Jurisdiction vs standing. Jurisdiction is whether the court can rule on something and standing is whether the person suing is materially involved enough to justify filing the suit.
I can't find in the article what court they filed suit with, they could have sued in federal court for all I know. It is worth noting though, that the hospital technically did business in Texas because they had some people working from home here. Best I can tell, this means that while they aren't by Texas laws on whether to do a procedure, they can't just tell the Texas AG to stuff it if he tries to sue them, because Texas courts would technically have some jurisdiction over an entity operating in Texas.
Best I can tell, their argument for standing was that they needed to make sure the Texas residents were having their consumer rights respected. According to my very limited understanding, that argument could go either way. They couldn't stop these procedures from being done, but they might have been able to get patient records.