Bupa has reached an agreement with BMI Healthcare to re-introduce patient treatment at all but three of the hospital network's facilities.
The pair have agreed a three-year contract the will see BMI hospitals immediately included on the insurer's recognised lists.
Only BMI Gisburne Park Hospital, BMI The Lancaster Hospital and BMI Castle Consulting Suite, will not be part of Bupa's Extended Choice, Partnership and Participating Hospital Networks.
The agreement is likely to be welcomed by intermediaries after some expressed fears that clients would be disadvantaged after Bupa removed 37 BMI hospitals from its recognised lists on New Year's Day as part of a contractual dispute.
However, an email update from Bupa to brokers said the private medical insurance (PMI) provider had now "reinstated pre-authorisation with immediate effect for new in-patient, day-case and out-patient treatment for our members at the 34 BMI hospitals which are recognised once again".
"We believe that the new arrangements provide a good basis to address the affordability of private healthcare while maintaining current standards of high quality care for Bupa members," it added.
The provider also said it would write to members it has contacted previously about the situation and attached a sample letter for advisers to send to members and scheme coordinators.
Dr Natalie-Jane Macdonald, managing director of Bupa Health and Wellbeing, said the agreement was in the long term interest of its members.
"We have agreed a number of improvements to the way Bupa and BMI Healthcare will work together in the future which we believe will improve the quality, effectiveness and efficiency of care delivered to our members," she said.
"As a result of this agreement, with immediate effect the vast majority of BMI Healthcare hospitals are now included on Bupa's recognised hospital lists.
"We regret any inconvenience that members and consultants have experienced in recent weeks."
John Von Klemperer, managing director of hospital operations at BMI Healthcare, added that the organisation was committed to providing the highest standards of patient care.
"We have worked hard to arrive at a solution that will allow us to continue to deliver excellent quality care and to further invest in our hospitals to provide improved facilities and new procedures for our patients," he continued.
"Throughout the negotiations, both BMI Healthcare and Bupa were committed to providing continuity of care for patients and regret any inconvenience which may have been experienced by patients or consultants during this time.
"This marks the beginning of a stronger working relationship between the companies; one which will benefit private patients, the independent healthcare sector and the healthcare sector as a whole," he concluded.
Brian Walters, principal of Regency Health, was pleased the dispute has ended but would have preferred policyholders had not been dragged into it.
"It was always likely that this situation would be resolved sooner rather than later given that the impasse benefited neither party," he said.
"Whilst it's good news for the industry that Bupa and BMI have reached agreement, it's disappointing that this couldn't be achieved privately and without the need to involve policyholders."
