Thousands Out Of Network As Memorial Hermann, BCBS End Contract

HOUSTON, TX — Many Texans could be out of network at Memorial Hermann Health System after Blue Cross Blue Shield of Texas dropped the hospital from its network Tuesday following failed contract negotiations, according to a Memorial Hermann news release.

The contract expired Tuesday after months of negotiations when the two sides couldn't reach an agreement on an extension. The disruption puts thousands of Memorial Hermann patients at 265 hospitals and health care facilities out of network, according to the release.

A sticking point in the negotiations for Memorial Hermann were proposals from Blue Cross Blue Shield affecting the hospital's physician group and accountable care programs. The proposals would dismantle "essential resources that allow Memorial Hermann to deliver exceptional and affordable care," the hospital said.

Blue Cross Blue Shield did not immediately respond to request for comment from Patch.