Meridian Behavioral Health, a substance use disorder (SUD) treatment provider, has recently acquired Gateway Recovery Center, a move that adds a crucial component to its continuum of care. This acquisition allows Meridian to provide medical detoxification services, a service that was previously outsourced. CEO Lewis Zeidner sees this acquisition as part of Meridian’s strategic growth plan, which aims to acquire three to four businesses each year.
Gateway Recovery Center, based in Inver Grove Heights, Minnesota, offers medical detoxification, therapy, case management, peer support groups, and Alcoholics Anonymous and Narcotics Anonymous meetings. The center provides care in “resort-style” environments, creating a welcoming and supportive atmosphere for patients in crisis.
Meridian, headquartered in New Brighton, Minnesota, operates 13 inpatient and eight outpatient facilities across the state, totaling 654 beds. The provider serves around 700 to 800 patients monthly, with a majority of them being Medicaid beneficiaries or receiving benefits through Minnesota’s Prepaid Medical Assistance Program (PMAP). Meridian also offers specialized programs for recently incarcerated individuals, women with histories of homelessness, individuals with severe mental illnesses, and members of the LGBTQ+ community.
Renovus Capital, a private equity firm based in Wayne, Pennsylvania, owns Meridian and has a portfolio that includes other SUD treatment providers and therapy companies. The acquisition of Gateway Recovery Center aligns with Meridian’s mission to provide high-quality care in a supportive environment for individuals struggling with substance use disorders.
Looking ahead, Meridian plans to continue its expansion by focusing on lower-acuity care models and enhancing the continuum of care for its patients. This approach ensures that individuals transitioning between different levels of care experience continuity and support throughout their treatment journey.
With the recent acquisition of Gateway Recovery Center and a focus on growth and expansion, Meridian Behavioral Health is poised to make a significant impact in the field of substance use disorder treatment. As the healthcare landscape continues to evolve, mergers and acquisitions in the industry are expected to increase, with 2025 projected to be a particularly active year for such transactions.
