Meridian Behavioral Health, a leading provider of substance use disorder (SUD) treatment, has strengthened its service offerings with the acquisition of Gateway Recovery Center, marking the company’s 20th facility. This strategic move enhances Meridian’s ability to provide medical detoxification services, eliminating the need for external referrals and ensuring a more seamless continuum of care for its patients.
With plans to acquire three to four facilities per year, Meridian’s leadership envisions continued expansion to bridge crucial gaps in addiction treatment.
Enhancing the Continuum of Care with Medical Detoxification
Gateway Recovery Center brings a key service to Meridian’s portfolio: medical detoxification. Previously, patients requiring medically supervised withdrawal had to be referred elsewhere, often disrupting the continuity of their care. With this acquisition, Meridian can now provide detox services in-house, ensuring a safer, more structured transition for patients moving into residential or outpatient programs.
“For some substances, [patients] need medical support to be stabilized,” said Lewis Zeidner, CEO of Meridian Behavioral Health. “That’s not something you can do in a traditional residential care program. The alternative, if someone comes to you in a residential care program, is to send them to an emergency department.”
By incorporating Gateway’s detox capabilities, Meridian ensures that patients receive immediate medical attention before transitioning into residential or outpatient treatment, reducing barriers to long-term recovery.
Meridian’s Expanding Footprint in Behavioral Health
Headquartered in New Brighton, Minnesota, Meridian Behavioral Health operates:
- 654 beds across 13 inpatient and 8 outpatient treatment centers.
- Serving 700-800 patients per month, with a strong focus on Medicaid populations.
- 90% of patients are Medicaid beneficiaries or covered under Minnesota’s Prepaid Medical Assistance Program (PMAP).
Meridian’s patient-centered approach includes specialty programs designed to meet the needs of:
- Individuals recently released from incarceration.
- Women with histories of homelessness.
- People diagnosed with severe mental illness (SMI).
- Members of the LGBTQ+ community seeking inclusive treatment options.
With these specialized services, Meridian continues to fill critical gaps in SUD treatment, ensuring that vulnerable populations receive high-quality, evidence-based care.
Gateway Recovery Center: A Modern Approach to Detox and Recovery
Located in Inver Grove Heights and Brooklyn Park, Minnesota, Gateway Recovery Center offers:
- Medical detoxification services for patients undergoing withdrawal.
- Therapy, case management, and peer support groups.
- Alcoholics Anonymous (AA) and Narcotics Anonymous (NA) meetings.
- A “resort-style” treatment environment, designed to provide a sense of dignity and comfort.
For Zeidner, the environment in which treatment takes place is just as important as the care itself. He emphasized that patients entering detox are often in a vulnerable state, carrying feelings of shame and distress.
“When people come to you in crisis, they’re feeling a lot of shame, often they’re feeling a lot of disgrace,” Zeidner explained. “If you wake up in a very dingy place that looks like it was built in the 50s, that looks more like jail than it does like treatment, it says something—even if you have the best staff and the best attitude.”
By acquiring Gateway Recovery Center, Meridian gains not only a medically equipped detox program but also an environment that aligns with its patient-first philosophy—a setting that reassures individuals that they are worthy of care and recovery.
Backed by Private Equity, Meridian Seeks Further Expansion
Meridian is owned by Renovus Capital, a Wayne, Pennsylvania-based private equity firm with investments in:
- Ascension Recovery Services, another SUD treatment provider.
- Behavioral Framework, a company specializing in autism therapy and diagnostics.
Despite focusing largely on Medicaid populations, Meridian is determined to continue its growth strategy, even as lower reimbursement rates present financial challenges. Each of its residential programs was once an independent provider before being integrated into the Meridian network.
The Future: Lower-Acuity Treatment and Step-Down Care
Looking ahead, Zeidner envisions expanding into lower-acuity care models that facilitate smoother transitions for patients completing residential treatment.
“We’re seeing a need right now for step-down programs from residential care,” he noted. “When we move people from one program to another, we need there to be continuity so that they’re not feeling like they’re answering all the same questions again and starting over.”
To enhance continuity of care, Meridian plans to invest in services that bridge the gap between high-intensity treatment and long-term recovery support. This could include intensive outpatient programs (IOPs), partial hospitalization programs (PHPs), or transitional sober living environments.
Mergers & Acquisitions in Behavioral Health on the Rise
The behavioral health industry is experiencing a surge in mergers and acquisitions (M&A), with industry experts predicting 2025 to be a strong year for consolidation. Several companies have already expanded their footprints this year, including:
- Oceans Healthcare
- PAX Health
- Iris Telehealth
As demand for SUD treatment continues to grow, Meridian is well-positioned to remain a leader in behavioral health expansion, leveraging acquisitions to enhance its service offerings and improve patient outcomes.
With its 20th facility now under its umbrella, Meridian Behavioral Health is reinforcing its commitment to providing high-quality, patient-centered treatment—and its growth journey is far from over.
