UNITED  STATES
                       SECURITIES  AND  EXCHANGE  COMMISSION

                           WASHINGTON,  D.  C.  20549

                              FORM  10-QSB
                            Amendment Number 3
 (  X )     QUARTERLY  REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES
          EXCHANGE  ACT  OF  1934

               For  the  Quarterly  Period  Ended          March  31,  2006
(   )     TRANSITION  REPORT  PURSUANT  TO SECTION 13 OR 15(d) OF THE SECURITIES
          EXCHANGE  ACT  OF  1934

               For  the  Transition  Period  From  ___________  to  ____________


                        COMMISSION  FILE  NUMBER:   0-30018


                              MERIDIAN  HOLDINGS,INC.
                              ----------------------
             (Exact  Name  of  Registrant  as  Specified  in  its  Charter)

              COLORADO                                   52-2133742
    -------------------------------               ------------------------
    (State  of  Other  Jurisdiction  of                  (I.R.S.  Employer
    Incorporation  or  Organization)               Identification  Number)
        6201  BRISTOL PARKWAY, CULVER CITY,  CALIFORNIA  90230
        ----------------------------------------------------------------
                    (Address  of  Principal  Executive  Offices)

                                 (213)  627-8878
        ----------------------------------------------------------------
              (Registrant's  telephone  number,  including  area  code)

                                       N/A
        ----------------------------------------------------------------
    (Former  name,  former address and formal fiscal year, if changed since last
                                     report)


Indicate  by  check  mark  whether  the  Registrant  (1)  has  filed all reports
required  to  be filed by Section 13 or 15 (d) of the Securities Exchange Act of
1934  during  the  preceding  12 months and, (2) has been subject to such filing
requirements  for  the  past  90  days.     Yes  (  X  )   No   (    )

As  of  March  31,  2006,  Meridian Holdings, Inc.,  Registrant  had  18,120,649
shares  of  its  $0.001  par  value  common  stock  outstanding.















                                        Page 1 of 19 sequentially numbered pages
                                                                       Form 10-Q
                                                              First Quarter 2006
                            MERIDIAN  HOLDINGS,  INC.


                                      INDEX



                                                                       PAGE
                                                                       ----


PART  I.  FINANCIAL INFORMATION

     Item 1.  Financial Statements

          Consolidated Balance Sheets                                    3

          Consolidated Statements of Operations                          4

          Consolidated Statements of Cash Flows                          5

          Notes to Consolidated Financial Statements                   6-8

          The Company                                                    9

    Item 2    Management's Discussion and Analysis of Financial Condition
          and Results of Operations                                     13

    Item 3    Controls and Procedures                                   16

PART II   OTHER INFORMATION

    Item 1    Legal Proceedings                                         17

    Item 6.  Exhibits and Reports on Form 8-K                           17


          Signature                                                     17



























                                        2
<PAGE>
                            MERIDIAN  HOLDINGS,  INC.
                           Consolidated Balance Sheets
                                   (Unaudited)
<TABLE>
<CAPTION>
ASSETS


                                                       As of
                                                      March 31,       December 31,
                                                      2006            2005
                                                   ==========         ==========
<S>                                                  <C>            <C>
Current assets
Cash and cash equivalents                           $  24,321        $   22,525
    Restricted cash                                    30,042            11,525
Accounts receivable, net of allowance for
doubtful accounts of $ 282,454                      2,387,199         2,245,848
 Other current assets                                   8,444             7,802
                                                     ----------       ----------
   Total current assets                             2,450,006         2,287,701

Fixed assets, net of accumulated depreciation          12,599            16,451
Investments  in CGI                                 2,010,000         2,000,000
                                                    ----------        ----------
 Total assets                                     $ 4,472,605       $ 4,304,152
                                                    ===========      ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
    Account payable                                  326,325             309,156
    Accrued payroll and other expense                379,781             307,021
    Reserve for incurred but not reported claims      15,982              39,480
    Other Credit Facilities                           56,499              50,348
    Current portion of long-term debt                  4,460               4,460
                                                   -----------        -----------
    Total current liabilities                        783,047             710,825

Long Term liabilities
    Loan from Majority Shareholder/officer         $   60,607             60,607
    Long-term debt, net of current portion         $   32,546             35,598
                                                   ----------           --------
    Total Long Term Liabilities                        93,153             96,205
                                                  ------------          ---------
    Total liabilities                                 876,200            807,030
                                                    ==========         =========
Commitments and contingencies

Stockholders' equity
Preferred stock (20,000,000 shares authorized,
par value $0.001; no shares issued and outstanding)         -             -
Common stock (100,000,000 shares authorized, par value
$0.001; 18,120,649 shares issued and outstanding at
December 31, 2005  and March 31, 2006 respectively      18,121            18,121
Additional paid-in capital                           5,823,010         5,838,010
Accumulated deficit                                 (2,244,725)       (2,344,008)
                                                   -----------         ----------
    Total stockholders' equity                       3,596,405         3,497,122
                                                   -----------         -----------
    Total liabilities and stockholders' equity    $  4,472,605       $ 4,304,152
                                                   ============         ===========
</TABLE>
See accompanying notes to consolidated financial statements



                                        3
<PAGE>
                            MERIDIAN  HOLDINGS,  INC.

                    Consolidated Statements of Operations
                                  (UNAUDITED)
<TABLE>
<CAPTION>


                                             Three Months Ended March 31,
                                                     2005             2004
                                                     ====             ====
<S>                                              <C>            <C>
Revenues
 Healthcare Services Revenue                    $ 282,515          $ 138,086
 Capitated Services                                95,721            322,192
                                                ----------         ----------
                                                  378,236            460,278
Cost of revenues
 Cost of Service- Claims and Capitation payments (75,971)          (159,603)
                                                  ---------          -------
 Gross margin                                    302,265            300,675
                                                  ---------          -------

Operating expenses

General and administrative                        197,633            450,983
                                                  ---------         ---------
Income/(Loss) from operations                     104,632         (150,308)
                                                  ----------        ---------

Other income and (expense)
 Other, expense                                   (5,349)           (14,211)
                                                  ----------        --------
                                                  (5,349)           (14,211)
                                                  ---------         ---------
      Net Income/(Loss)                           99,283         $ (164,519)
                                                 ===========      ===========
Net Loss per share:
    Basic and diluted                           $  0.01            $  0.000
    Weighted average shares outstanding     18,120,650           14,370,649


</TABLE>




















See accompanying notes to consolidated financial statements
                                        4
<PAGE>

                              MERIDIAN  HOLDINGS,  INC.

                        Consolidated Statements of Cash Flows
                                     (UNAUDITED)

<TABLE>
<CAPTION>
                                                  Three Months Ended March 31,
                                                         2005            2004
                                                        =====          ======
<S>                                                   <C>           <C>
Cash flows from operating activities
  Net Loss                                             $ 99,283   $ (680,072)
  Adjustments to reconcile net Loss to net
  cash used in operating activities:
  Stock Option issued                                         -      500,000
  Depreciation and amortization                            3,852       8,908
  Equity interest in earnings of investments
  (Increase) decrease in:
         Restricted cash                                 (18,517)      98,777
         Accounts receivable                            (141,351)    (131,761)
         Other current assets                               (642)           -
Increase(Decrease) in
         Accounts payable                                (17,169)     170,351
         Accrued payroll and other                        72,000            -
         Incurred but not reported reserve               (23,498)     (26,509)
                                                          --------     -------
Net cash provided by operating activities                  8,696      (60,306)
                                                          --------     -------

Cash flow from investing activities
   Acquisition of fixed assets                                  -      (8,918)
   Increase in investment in CGI                         (10,000)           -
                                                          --------     --------
Net cash used in investing activities                    (10,000)      (8,917)
                                                          ---------     --------
Cash flow from financing activities
   Borrowings from majority stockholder                         -       31,459
   Borrowings on long term debt                                -       (38,025)
  (Repayment)Borrowing from Line of Credit                  6,151        1,300
  (Repayment)Borrowing from Long Term Debt                 (3,052)           -
                                                           --------    --------
Net cash provided by financing activities                   3,099       70,784
                                                           --------    ---------

   Increase(Decrease) in cash and cash equivalents          1,795        1,560

Cash and cash equivalents, beginning of period             22,526        1,218
                                                        ---------      --------
Cash and cash equivalents, end of period                $  24,321     $  2,778
                                                        ==========    ==========

</TABLE>










See accompanying notes to consolidated financial statements

                                        5
<PAGE>
                            MERIDIAN  HOLDINGS,  INC.

                   Notes  to  Consolidated  Financial  Statements
1.     General

Basis  of  Reporting

The interim accompanying unaudited consolidated financial statements  have  been
prepared in  accordance  with generally accepted accounting principles  ("GAAP")
for  interim  financial  information  and  with the instructions to Form 10-QSB.
Accordingly,  they  do not include all of the information and footnotes required
by  GAAP  for  complete financial statements.  In the opinion of management, all
adjustments  (consisting of normal, recurring accruals) considered necessary for
a  fair  presentation  have  been included.  For further information, management
suggests  that the reader refer to the audited financial statements for the year
ended December 31, 2005 included in its Annual Report on Form 10-KSB.  Operating
results  for  the  three-month  period  ended March 31, 2006 are not necessarily
indicative of the results of operations that may be expected for the year ending
December  31,  2006.

                              Nature of Operations

Meridian  Holdings,  Inc. (the "Company") was incorporated under the laws of the
State  of  Colorado  on October 13, 1998.  The Company is located in the City of
Los  Angeles, California, U.S.A. and contracts with physicians to provide health
care  services  primarily  within  the  area  of  Los  Angeles  County.

The  Company  is  an  acquisition-oriented  holding company focused on building,
operating, and managing a portfolio of business-to-business companies.  It seeks
to acquire majority or controlling interests in companies engaged in e-commerce,
e-communication,  and  e-business services, which will allow the holding company
to  actively participate in management, operations, and finances.  The Company's
network  of  affiliated  companies  is designed to encourage maximum leverage of
information   technology,   operational   excellence,  industry  expertise,  and
synergistic  business  opportunities.

The Company also provides medical  services management to its' Capnet IPA health
care  provider  network.  We  provide  the  following  services:

     - disease management -- a method to manage  the costs and care of high risk
       patients and produce better patient care

     - quality management -- a  review  of overall patient care measured against
       best medical practice patterns

     - utilization management -- a  daily  review of statistical data created by
       encounters, referrals, hospital,  admissions and nursing home information

     - claims adjudication and payment

Cash And Cash Equivalents

The Company considers all highly liquid investments with original maturities of
three months or less to be cash equivalents ( e.g. restricted cash).  From time
to time, the Company  maintains cash balances  with financial  institutions  in
excess of federally insured limits.

Use of Estimates

The  preparation  of  financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect  the  reported  amounts  of  assets  and  liabilities  and  disclosure of
contingent  assets  and  liabilities at the date of the financial statements and
the  reported  amounts  of  revenues  and  expenses during the reporting period.
The  most  significant  area  requiring  estimates  relate  to  the  Company's
                                        6
<PAGE>
Global Risk arrangement with County of  Los  Angeles  Community  Health  Plan,
(CHP) and  Tenet Healths Systems, such  estimates  are  based on knowledge  of
current  events  and  anticipated   future  events,  and  accordingly,  actual
results may ultimately differ materially from those estimates.

Fiscal Year

The Company operates on a December 31st year end.

Revenue Recognition

The Company  prepares  its  financial statements and federal income taxes on the
accrual basis of  accounting. The  Company  recognizes  capitation  revenue on a
monthly basis from managed care plans  that  contract with the  Company  for the
delivery   of  health  care  services.  This  capitation   revenue   is  at  the
contractually   agreed-upon per-member, per-month  rates.

With regard to revenues,  expenses  and  receivables  arising from global risk
agreements with CHP and TENET, the Company estimates amounts it  believes will
ultimately be realizable based in part upon estimates of claims  incurred  but
not  reported  (IBNR)  and  estimates  of retroactive adjustments or unsettled
costs to be applied by CHP and/or  Cap Management Systems.  The IBNR estimates
are made  by  CAP-Management Systems,  utilizing  actuarial  methods  and  are
continually  evaluated  by  management  of the Company based upon its specific
claims  experience.  It  is  reasonably  possible  that  some  or all of these
estimates  could  change  in  the  near  term  by  an  amount  that  could  be
material  to  the  financial  statements.

The  Company  is a party  to a  Risk Pool Agreement (the "Agreement") with Tenet
HealthSystem  Hospitals,  Inc. ("Tenet").  Pursuant to the Agreement, 50% of the
monthly  capitation  revenue  is  received  directly  by  the  Company,  and the
remaining  50%  is  deposited  into  an escrow account from which Cap-Management
Systems,  Inc.,  a  subsidiary  of Tenet pays all claims  expenses,  reinsurance
expenses,  make  allowance  for  IBNR  reserve,  and  retains  a management fee.
The  Company  is  responsible  for 50% of  Profit (loss) after all institutional
claims  reinsurance  and management fees are paid, and Incurred But Not Reported
("IBNR")  reserve  have  been  accounted  for.

As of December 2004, Centinela Hospital, one of Tenets facilities under global
risk  contract  with  the  Company,  was  sold  to  Centinela  Freeman  Health
Systems, Inc.  A replacement contract between  the  Company, CHP and Centinela
Freeman Health System  is  still  in   process.  All  IBNR   calculations  and
estimates for the previous contracts  with  Centinela Hospital /Tenet has been
suspended. A new IBNR  calculation and  estimate will  be established, as soon
as   the   replacement   contracts  between the  Company,  CHP  and  Centinela
Freeman Health are activated.

From time to time, CHP charges the Company for certain medical expenses, which
the  Company believes are erroneous or are not  supported  by  its  underlying
agreements with CHP. Management's estimate of recovery on these  contestations
is based upon its judgment and its consideration of several factors  including
the  nature  of  the   contestations,  historical  recovery  rates  and  other
qualitative factors.

Non-HMO  accounts   receivable   (Fee   for   Service   Revenue),  aggregating
approximately  $138,086 as at March 31, 2005,  relate  principally to  medical
services  provided on  a fee for service  basis,  and  are reduced by  amounts
estimated    to    be   uncollectible.   These   receivables   are   typically
uncollateralized  customer  obligations due under normal trade terms requiring
payment within 30-90 days from the invoice date. The  Company  does not charge
late  fees  or  penalties  on  delinquent  invoices,  however  it  continually
evaluates  the  need  for  a  valuation  allowance.  Management's  estimate of
uncollectible   amounts   is   based   upon   its   analysis   of   historical
collections and other qualitative factors.

                                        7
<PAGE>
Costs of Revenues

The  Company  recognizes costs of revenues paid to physicians on a monthly basis
who  contract  with the Company for the delivery of health care services.  These
costs  are   at   the  contractually  agreed-upon  per-member,  per-month  rates
or at the California Medi-cal fee for service rates.

Fair  Value  of  Financial  Instruments  and  Concentration  of  Credit  Risk

The  carrying  amounts  of  cash,  receivables,  accounts  payables  and accrued
liabilities  approximate  fair  value  because  of  the  immediate or short-term
maturity  of  these  financial  statements.

Equity Method

Investments  in  certain  companies  whereby the Company owns 20 percent or more
interest  are carried at cost, adjusted for the Company's proportionate share of
their  undistributed   earnings   or   losses,  because  the  Company  exercises
significant  influence  over  their  operating  and  financial activities.  Such
investee  entity is CGI Communications  Services,  Inc.  ("CGI").

2.    Investments

                                    InterCare

On  September  18,  1999, the Company acquired 51% of all the outstanding Common
Stock  of  InterCare in exchange for services and assumption of certain debts of
InterCare. During  fiscal  year  2000,  additional  stock  issued  by  InterCare
combined  with  a  dividend  distribution  by  the  Company  of  InterCare stock
resulted in a net decrease in the Company's ownership percentage to 32% as at
December 31, 2000.  A dividend of approximately $160,800 was recorded reflecting
the  relative  net  book value of the Company's investment in InterCare that was
distributed to Meridian  Holdings, Inc.,  shareholders  as  at  that  time.  The
company  earlier  in  2003 completely  divested  itself  from InterCare DX,  but
continues  to  provide  management and administrative services for InterCare for
a fee.

                                       CGI

On December 10, 1999, the Company agreed to acquire a 20% equity interest in CGI
for  common  stock.  On December 20, 1999, the board of directors authorized the
issuance  of  4,000,000  pre-split (adjusted to 12,000,000 post-split) shares of
common  stock  in consideration for the 20% of the interest in CGI.  At the date
of  the  transaction,  the  Company's  shares opened at a price of $3 per share.
Between  September  1,  1999  and the acquisition date, the Company's stock sold
within  a  range  of  $.25  to  $3.25  per share (an average of $.97 per share).
Because of the limited trading history of the Company, the six-month average was
deemed  to  be  a  fair  valuation  of  the  transaction,  resulting  in a total
investment  balance  of  $3,880,000  as  of  December  31,  2000  and 1999.  The
shareholders  of  CGI  were  also  issued  warrants  to  purchase  an additional
1,000,000 pre-split (adjusted to 3,000,000 post-split) shares of common stock at
$2  pre-split  share  (or  approximately  $0.67  on  a  post-split basis) over a
five-year  period  as  a hedge against any fluctuation of the share price of the
common  stock  in  the immediate future. These warrants will expired on December
30,  2004.

During  2005,  the Company recorded non-cash dividends of $39,000, representing
distributions of  a  portion  of its holdings of CGI Communications  Services,
Inc.  to the Company's stockholders. In addition, at December 31, 2005,
management reviewed the carrying amount of the Investment in CGI. The investment
amount was written down to $2,000,000 which is the fair market value of the
shares of CGI that are owned by the Company.



                                        7
<PAGE>
3.     Fixed  Assets

Fixed assets consist of the following:
<TABLE>
<CAPTION>
                                            As of
                                           March 31, 2005     December 31,2005
<S>                                      <C>                    <C>
Computer equipment                         $111,155              $  111,155
Leasehold improvements                        6,500                   6,500
Office furniture and fixtures                36,603                  36,603
Office equipment                             25,356                  25,312
Software                                     26,502                  25,803
Medical equipment                             6,654                   6,654
                                             --------              -------
                                            212,770                 212,027
Less accumulated depreciation              (200,171)               (182,738)
                                            ---------             --------
                                          $  12,599                $ 29,289
                                            =========            ==========
</TABLE>
4.     Line  of  Credit

The  Company has a $50,000 line of credit with a financial institution.  Related
advances  bear  interest  at  11%, and interest is payable monthly.  The line of
credit  expired  March  21,  2006. The outstanding balance has been converted to
a term loan payable over six months period at interest rate of 11% per annum..

5.     Long-term  Debt

The  Company  has  various loans with financial institutions with interest rates
ranging  from  4%  to  15%  and  maturity  dates  ranging  from  2015  to  2024.

6.     Risk  Pool  Agreement

The  Company  is a party  to a  Risk Pool Agreement (the "Agreement") with Tenet
HealthSystem  Hospitals,  Inc. ("Tenet").  Pursuant to the Agreement, 50% of the
monthly  capitation  revenue  is  received  directly  by  the  Company,  and the
remaining  50%  is  deposited  into  an escrow account from which Cap-Management
Systems,  Inc.,  a  subsidiary  of Tenet pays all claims  expenses,  reinsurance
expenses,  make  allowance  for  IBNR  reserve,  and  retains  a management fee.
The  Company  is  responsible  for 50% of  Profit (loss) after all institutional
claims  reinsurance  and management fees are paid, and Incurred But Not Reported
("IBNR")  reserve  have  been  accounted  for.

These revenues and expenses have been reflected in the accompanying Consolidated
statements of operations for the for the quarters ended March 31, 2006 and 2005.

The  Company has also reflected the monies in the escrow account as of March 31,
2006  and  March 31,  2005  as  restricted cash in the accompanying consolidated
balance sheets. Additionally, Cap-Management Systems, Inc., provides the Company
with an estimate as to the  incurred  but  not  reported reserve, which has been
recorded as such in the accompanying  consolidated  balance  sheets.

On  October 4, 2005, Tenet HealthSystem Hospitals, Inc,  (Tenet)  announced that
it has entered  into  an  agreement  to  sell  Community & Mission  Hospitals of
Huntington Park in Huntington Park, California., to Karykeion, Inc., a privately
held Corporation. These are two  of the  hospitals contracted   with  CAPNET IPA
and County of Los Angeles Community Health Plan . This  transaction  closed on
December 31, 2005.  Also, as of January 1, 2006, the registrant has no contracts
with Tenet Health Systems Hospitals, as a result of sale of all the contracted
Hospitals by Tenet.

The new owners of these hospitals, have indicated their intent not to renew  the
contract with Los Angeles County Community Health Plan and CAPNET IPA.
                                               9
<PAGE>

13     Judgment Award

On January 8, 2004, a default judgment was entered in  favor of the registrant,
by the Los Angeles County Superior Court in a case  titled  Meridian  Holdings,
Inc. versus Sirius Technologies of America, a Delaware Corporation  Case Number
BC256860. The amount of the judgment including damages, court cost and punitive
damages are $30,687,926, with a pre-judgment interest at the annual rate of 10%
The company is pursuing collection of this judgment very vigorously.

Recent Events

On May 19, 2006, the company accepted the offer by InterCare DX, Inc., and
CGI Communications Services, Inc, both an affiliated entities 5,000,000
of Common stock at fair market value of 0.023 cents and warrant to purchase
additional 5,541,503 shares at 25 cents per share, with expiration date of
May 19, 2008, in exchange for forgiveness of debt owed to Meridian, in the
amount of $1,500,375.84. by InterCare. Also, the registrant accepted the offer
to be issued by CGI Communications Services,  6,013,043 Shares of this CGI
Common Stock at 0.04 cents per share, to Meridian Holdings, Inc, in exchange
for forgiveness debt in the amount of $240,521.71












































                                            10
<PAGE>
                            MERIDIAN  HOLDINGS,  INC.

                                    BUSINESS

The following section contains forward-looking statements that involve risks and
uncertainties,  including  those  referring  to the period of time the Company's
existing  capital  resources  will  meet the Company's future capital needs, the
Company's future operating results, the market acceptance of the services of the
Company, the Company's efforts to establish and the development of new services,
and  the  Company's  planned investment in the marketing of its current services
and  research  and  development  with  regard to future endeavors. The Company's
actual   results  could  differ  materially  from  those  anticipated  in  these
forward-looking  statements  as a result of certain factors, including: domestic
and  global  economic  patterns  and  trends.

Meridian  Holdings,  Inc. (the "Company") was incorporated under the laws of the
State  of  Colorado  on October 13, 1998.  The Company is located in the City of
Los  Angeles, California, U.S.A. and provides management services to its'
Affiliated group of Companies.

Meridian Holdings, Inc., assigns a dedicated team to each affiliated company and
actively  assists  in their management, operations  and  finances.  The  Company
seeks to maximize shareholder value by actively providing operational assistance
and  expertise to help its partner  companies  grow  and  develop  and by giving
its shareholders the opportunity to participate in the initial public  offerings
of its partner companies while retaining a significant  ownership interest after
the initial public offering.

Its  network of partner companies creates an environment through which companies
can  leverage  one  another's  information  technology,  operational experience,
business  contacts  and  industry  expertise.

We  plan  to  hire  additional  senior  management  personnel   to  lend  expert
guidance  in  further  development  of our business plan. Also, we will actively
seek opportunities for strategic  transactions  intended  to  raise  capital  to
develop  our  emerging  business  strategy,  potentially  including  issuance of
additional  equity  or  debt instruments.  In  addition,  we  will  continue  to
evaluate  and  may  enter into strategic  transactions,  including  mergers  and
acquisitions.

              BUSINESS UNITS AND AFFILIATED PARTNERS

The  Company  has  under  management  the  following  business  units:

1.     Capnet IPA

2.     InterCare DX,  Inc.

3.     CGI  Communications  Services,  Inc.

4.     Meridian Energy Corporation

5.     Meridian Health Systems

                          CAPNET IPA

Capnet  IPA  ("Independent Physician Association"), with over 300 physicians, 15
community  hospitals, 4 teaching Hospitals and other ancillary service companies
contracted  within its network, is the core component of Meridian Holdings, Inc.
healthcare  management  division  business.  The  linkage  of  these entities is
imminent  as   the    convergence  of  technology  brings  to bear the burden of
information overload, currently  one  of  the  most  critical  problems  in  the
healthcare industry. The  Company  believes  that by  using  currently available
Software technology, most of the  healthcare  industry   information  processing
could be handled more efficiently.  To  be competitive, the Company must license
                                            11
<PAGE>
leading  technologies,  enhance  its  existing services and content, develop new
technologies  that  address  the  increasingly sophisticated and varied needs of
healthcare  professionals  and healthcare consumers and respond to technological
advances  and  emerging  industry  standards  and  practices  on  a  timely  and
cost-effective  basis.

                       InterCare DX, Inc.

InterCare DX,  Inc.  formerly  known  as  Inter-Care  Diagnostics, Inc., is
organized in the  State  of California. The company is  an innovative software
products and  services company specializing in providing  healthcare management
and  information   system   solutions.

Current Products and Services

Vasocor Vascular Diagnostic Centers

The  Company  recently  initiated  the commercialization of Vasocor Vascular
Diagnostic Centers (VVDC), after  an extensive  patient, provider and health
insurance plan acceptance test.

It   is  a  freestanding  diagnostic  device,  that  employs  a  revolutionary
non-invasive inexpensive,  easy  to  use  procedure  that  has been clinically
proven to detect coronary artery  disease  (CAD)  earlier  and more accurately
than existing Techniques. CAD. The Vasocor Device has FDA pre-market approval,
validated  clinical  trial  data,  Medicare/Medicaid  and  Indemnity insurance
re-imbursement  eligibility.  In  addition  to  coronary arterial disease, the
device  can  also be used in the non-invasive diagnosis of peripheral vascular
disease and estimating endothelial function

InterCare Clinical Explorer (ICE(tm))

This is an Electronic Health Record System, with Tele-Medicine and Telehealth
Components. The  strength  of ICE(tm) application is derived from differentiated
core technologies  consisting of: Mainstream SQL Database with full open
architecture human  anatomy  and  graphical  user  interfaces  that  simplify
documentation and information access; data mining and data query tools; end-user
tool  sets; and  interface  capabilities  to  facilitate  peaceful  coexistence
with  other systems.  Over  10  years  of  research  and  development have been
spent in the development  of  ICE(tm)  software.

Benefits of ICE(tm) Products to Healthcare Payors and Providers:

ICE(tm) can  seamlessly  integrate  with  legacy  systems  (utilizing  any
off- the- shelf interface  engine)  through  both  HL7  and  proprietary  legacy
interfaces. A 12-tier  security paradigm offers industry leading confidentiality
and  control of information. Security "behavior" rules are fully configurable by
privileged system  administrator(s), without programming, through the underlying
knowledge   bases.  ICE(tm)'s   embedded  security  will  be fully HIPAA (Health
Insurance Portability and  Accountability  Act of 1996) compliant when the final
rulings are  released,  and  supports  data  compartmentalization  down  to  the
level  of specific value  in  any  data  field.


                   CGI  COMMUNICATIONS  SERVICES,  INC.

CORPORATE  INFORMATION

CGI  Communications Services, Inc., was incorporated under Delaware law on April
12,  1997.  Its  executive  offices  are  at  6201 Bristol Parkway, Culver City,
California  90230.  Its  telephone  number  is (213) 627-8878.

By combining  enabling  technology  with  industry  leading companies  supplying
telecommunications,  medical  products  and  services, CGI  is  poised  to  make
InterCare, DX Inc.'s ICE(tm)  suite of  clinical  applications,  the  global
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leader  in  providing comprehensive  telemedicine  and  telecare  solutions. CGI
will  now  begin  a  Pilot-testing  of this technology among over 300 healthcare
providers   affiliated  with  CAPNET  IPA,  an  integrated  healthcare  delivery
system,  located  in  Los  Angeles,  California, managed  by  Meridian Holdings,
Inc., the ASP version of ICE(tm) when released.

BUSINESS  STRATEGY

CGI  Communications Services, Inc., intends to capitalize on the enormous public
attention  focused  on  the  Internet  and  the  need for increased bandwidth by
increasing  its'  telemarketing sales and technical support staff, targeting its
advertising  to  its  core  audience,  and  by  providing  the  most  efficient,
lowest-cost high speed Internet service in its service corridor. CGI is focusing
its  marketing  efforts  to  specialty and small business entities.

Meridian Energy Corporation

Meridian Energy Corporation is a wholly owned subsidiary  of  Meridian Holdings,
Inc., both Colorado Corporation., is a diversified  energy  and natural resource
Company, seeking high returns with minimal risk,  in  the  field of Electricity,
Oil and Gas market. Meridian Operates, backs  and invests  in  major exploration
and  exploitation  organized  by  highly regarded geologist,  geophysicists  and
other energy executives. The  Company  seeks  highly  visible  opportunities  in
countries around the globe with a history  of  natural  resource production that
offer  exciting  and  attractive  propositions the company will seek to minimize
risk by bringing in either joint venture, carried or  working interest partners,
depending on the size and scale of the project.

Meridian Health System

Meridian Health Systems, (VIP Concierge Medical Services Company) is  a division
of  Meridian  Holdings,  Inc, focused in provision of tertiary medical specialty
care for the  international clientele  in  U.S.A.  The  Company's  mission is to
provide access  to  the very best US physicians  and hospitals for international
patients and providers as well as reduce  and  mitigate  access  barriers  to US
Healthcare.  The  Company serves as a single point of contact and accountability
for the patients, families, physicians, allied health, hospitals and vendors.

We  also  offer  optional  Flexible  Medical Care Services through our preferred
participating healthcare provider network in both United States and Abroad under
our Healthcare membership discount services program, as well  as  facilitate the
setting up of a Health Savings Account (HSA) program through a partner
Commercial Bank, and/or  High  Deductible  Health  Insurance plan through  a
partner health insurance company.

SELECTED  FINANCIAL  DATA

The Company has net working capital of $1,666,959 as at March 31, 2006 compared
to $1,006,897 at  March  31,  2005.   This  represents  an increase in  working
capital  of  about  65%. This  increase in working capital is attributed to the
increase in account receivable  as well  as decrease in  operating expense for
the period then ended.

The  selected financial data set forth above should be read in conjunction with
"Management's  Discussion  and Analysis  of  Financial Condition and Results of
Operations"  and  the consolidated financial  statements and notes  thereto.

MANAGEMENT'S  DISCUSSION  AND  ANALYSIS  OF  FINANCIAL  CONDITION AND RESULTS OF
OPERATIONS:

The following section contains forward-looking statements that involve risks and
uncertainties,  including  those  referring  to the period of time the Company's
existing  capital  resources  will  meet the Company's future capital needs, the
Company's future operating results, the market acceptance of the services of the
Company, the  Company's  efforts  to  develop new products and services, and the
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Company's  planned  investment  in  the  marketing  of  its current services and
research  and  development   with  regard  to  future endeavors.  The  Company's
actual   results  could  differ  materially  from  those  anticipated  in  these
forward-looking  statements  as a result of certain factors, including: domestic
and  global  economic  patterns  and  trends.

LIQUIDITY  AND  CAPITAL  RESOURCES  OF  THE  COMPANY.

We  believe that we will be able to fund our capital commitments, operating cash
requirements  and  satisfy our obligations as they become due from a combination
of  cash  on hand, expected operating cash flow improvements through HMO premium
increases  and  improvements in the benefit structure of HMO contracts.

However,  there  can  be  no  assurances  that  these  sources  of funds will be
sufficient  to  fund  our  operations and satisfy our obligations as they become
due.

Long-term   cash   requirements,  other  than  normal  operating  expenses,  are
anticipated  for the continued development of the Company's business plans.  The
Company  will need to raise additional funds from investors in order to complete
these  business plans.

If  we   need   additional   capital  to  fund  our  operations,  there  can  be
no  assurance that such additional capital can be obtained or, if obtained, that
it  will be on terms acceptable to us. The incurring or assumption of additional
indebtedness could result in the issuance of additional equity and/or debt which
could have a dilutive effect on current shareholders and a significant impact on
our  operations.

RESULTS  OF  OPERATIONS

THE  FINANCIAL  RESULTS  DISCUSSED  BELOW  RELATE  TO  THE OPERATION OF MERIDIAN
HOLDINGS  FOR  THE  THREE MONTHS  ENDED MARCH 31, 2006 AS  COMPARED  TO  THE
THREE  MONTHS  ENDED  MARCH 31, 2005.

REVENUE

The  Company  generated  revenues  from  operations of $378,236 during the first
quarter ended March 31, 2006, compared to revenues from operations of $460,278
during  the comparable period  in 2005.

The Company  recorded  a  net  income  from  operations  of $104,632 during  the
three-month period  ended  March  31, 2006,  compared  to  net  loss of $164,519
during  the  comparable  period  in  2005.  The increase in net income is due to
additional revenue generated from the clinic operations, as well as risk pool
settlement release by Los Angeles County Community Health Plan for prior period.

Revenue  generated  from our  managed care contracts with HMOs  as a  percentage
of medical services revenue was approximately 21% and 70%, respectively,  during
the three months  ended March 31,  2006  and  2005. Revenue  generated  from the
clinic operations for the first 3 months ended March 31, 2006  was  $282,515  or
75% of the total revenue for the period then ended compare to $138,086  or
30% of the total revenue for comparable period in 2005.

The  Company  is a party  to a  Risk Pool Agreement (the "Agreement") with Tenet
HealthSystem  Hospitals,  Inc. ("Tenet") and Centinela  Freeman  Health Systems.
Pursuant to the Agreement, 50% of the monthly  capitation  revenue  is  received
directly by the Company, and the remaining  50%  is  deposited  into  an  escrow
account from which Cap-Management Systems,  Inc.,  a  subsidiary  of Tenet  pays
all claims  expenses,  reinsurance expenses,  make  allowance  for IBNR reserve,
and retains a management fee. The Company is responsible for 50% of Profit
(loss) after all institutional claims  reinsurance and management fees are paid,
and Incurred But Not Reported ("IBNR") reserve have been accounted for. The risk
pool revenue component of the total revenue generated from our managed care
contracts is $33,322 or 7.2% of total revenue for the period ended March 31,
2006 compared to $118,965 or 26% of total revenue for the period ended March
31, 2005.

The incurred but not reported (IBNR)reserve decreased from $39,840 for the
Period ended December 31, 2005 to $15,982 for the period ended March 31, 2006.
The decrease in IBNR reserve is due to payment of additional claims incurred
during the previous quarter then ended.

Non-HMO  accounts   receivable   (Fee   for   Service   Revenue),  aggregating
approximately  $282,515 or 75% of total revenue as at March 31, 2006, compared
to $138,086 or 30% of total revenue for the period ended march 31, 2005.
This revenue relate principally to  medical services  provided on  a  fee for
service basis, and are reduced by  amounts estimated to be uncollectible.
These  receivables are typically uncollateralized  customer  obligations due
under normal trade terms requiring payment within 30-90 days from the
invoice date. The Company does not charge late  fees  or  penalties on
delinquent invoices, however it continually evaluates the need for a
valuation  allowance.  Management's estimate of uncollectible   amounts
is based upon its analysis of historical collections and other qualitative
factors.

COST OF REVENUE

The  cost  of  revenue   for  three  months  ended  March  31, 2006 is $75,971
compared to $159,603 for three months  ended  March  31, 2005. This  represents
a 52% decrease in cost of revenue. The decrease in cost of revenue  is  due  to
decrease in membership enrolment in our manage care contracts, as well as
termination of Tenet contracts with contracted hospital as well as providers.

EXPENSES

General  and  administrative expenses  were  $197,633 or 43% of  total  revenues
for   the  three  months  ended  March  31,  2006 compared  to  $450,983  or 98%
of total revenues for  three  months  ended  March 31,  2005.  This  decrease in
operating expense is due to laying off of some of the clinic employees, and
outsourcing of of Capnet IPA management services  to Regal Medical Group.

Direct medical costs includes all costs associated with  providing services for
CAPNET  IPA contracted members,  including direct medical  payment to physician
providers, hospitals and ancillary services  on  capitated  and fee for service
basis. For the quarter ended March 31, 2006, these costs represents 16% of
total revenue, compared to 36% of total revenue fore quarter ended March 31,
2005. This  is  referred  to  as Medical Loss Ratio (MLR). Our  Medical  Loss
Ratio varies  from  quarter  to  quarter due  to  fluctuations  in utilization,
the  timing  of  claims paid by the HMOs on our behalf, as well as increases in
medical  costs  without  counter-balancing  increases in capitation revenues.

Of  the $202,982 total expenditure for the three  months ended March 31, 2006,
$75,971 or 28% was for payment of medical claims, $122,804 or 45% was for
payroll and employee benefits, or 27% was for payment of consultants and
general corporate purposes.

Management  anticipates  that  general operating expenses will increase, as the
IPA membership continues to grow and the company hires more personnel.

INCOME/LOSS

The registrant recorded a net income from operations for the three months ended
March  31, 2006 of  $ 99,283 compared to net loss of $164,519 during
comparable period in 2005

CERTAIN FACTORS AFFECTING FUTURE OPERATING RESULTS

This  Form   10-QSB  contains  certain  forward-looking  statements  within  the
meaning  of  Section  27A  of  the Securities Act of 1933 and Section 21E of the
Securities  Exchange  Act  of  1934.  When used in  this  Form 10-QSB, the words
"believe,"  "anticipate,"  "think,"  "intend,"  "plan,"  "will  be," and similar
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expressions, identify such forward-looking statements. Such statements regarding
future events and/or the future financial performance of our Company are subject
to  certain  risks  and  uncertainties,  which  could cause actual events or our
actual  future  results to differ materially from any forward-looking statement.
Certain  factors  that  might  cause such a difference are set forth in our Form
10-KSB  for the  period  ended  December  31, 2004, including the following: our
success  or  failure  in  implementing  our  current  business  and  operational
strategies; the availability,  terms  and  access to capital and customary trade
credit;  general  economic  and business conditions; competition; changes in our
business strategy; availability, location and terms of new business development;
availability and terms of necessary or desirable financing or refinancing; labor
relations; the outcome  of  pending or  yet-to-be  instituted legal proceedings;
and labor and employee  benefit  costs.

Medical claims payable include estimates  of  medical  claims  expenses incurred
by our members but not yet reported to us. These estimates are based on a number
of  factors,  including  our  prior  claims  experience  and  pre-authorizations
of treatment. Adjustments, if necessary, are made to medical claims expenses  in
the period the actual claims costs are ultimately determined. We  cannot  assure
that  actual  medical  claims  costs  in  future  periods  will  not  exceed our
estimates. If  these  costs  exceed  our  estimates, our profitability in future
periods  will  be  adversely  affected.

Pursuant   to   the   Medicaid   program,  the  federal  government  supplements
funds  provided  by  the  various states for medical assistance to the medically
indigent.  Payment  for such medical and health services is made to providers in
an  amount determined in accordance with procedures and standards established by
state  law  under  federal  guidelines.  Significant  changes  have been and may
continue  to  be made in the Medicaid program which could have an adverse effect
on  our  financial  condition,  results  of  operations  and  cash  flows.
During certain fiscal years,  the  amounts  appropriated  by  state legislatures
for payment of Medicaid claims have not been  sufficient to reimburse  providers
for  services  rendered to Medicaid patients. Failure of a state to pay Medicaid
claims on a timely basis may have an adverse  effect on our cash  flow,  results
of  operations  and  financial  condition.

PLAN  OF  OPERATIONS

On February 8, 2006, the registrant issued a press release announcing that
Meridian  Health  Systems, a  healthcare services division of Meridian Holdings,
Inc,  has  entered  into  an  Exclusive  Healthcare Services and Project Teaming
Agreement  with  Los  Angeles  Hispanic  Health  Network,  (LHHN), a Los Angeles
Metropolitan Hispanic Chambers  of  Commerce  initiative.

Under  the  terms of this three-year automatically renewable agreement, Meridian
will  arrange  for the provision of healthcare services on an exclusive basis to
enrolled  employees  and  relatives  of  small to medium sized Hispanic employer
groups  and  self employed individual members of LHHN, in a culturally sensitive
manner, through Meridian's network of affiliated physicians, hospitals and other
ancillary  services providers initially  within Greater Los Angeles County, with
later  expansion  to  other  areas  of  United  States  and  abroad.

The  company projects that this agreement with LHHN which initially is estimated
to  provide  increased  health  insurance  purchasing power to over 160,000
Hispanic businesses within the greater Los Angeles Metropolitan area. Revenue
will be generated through manage care services and membership enrolment into
our network.

RECENT  EVENTS

At the annual meeting of the shareholders, held on Saturday, February 25, 2006,
the  following  individuals  were  elected to serve as directors of the company
until the next  annual  meeting:  Andrew Smith, Ludlow Creary, James Truher and
Marcellina Offoha. Anthony C. Dike, was re-elected for another three year term.

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Additionally, shareholders ratified the reappointment of Madsen Associates
CPA, Inc., as the independent auditor for the fiscal year ending December 31,
2005 and re-approved the Company's  2001  Joint  Incentive  and Non-Qualified
Stock Option Plan for fiscal year 2006.

Item 3.  Controls and Procedures

Evaluation of Disclosure Controls and Procedures

As required by Rule 13a-15(e) under the Securities Exchange Act of 1934, as
amended (the "Exchange  Act" ), the Company carried out an evaluation under  the
Supervision and with the participation  of  the  Company's management, including
the Chief Executive Officer  and President and the Principal  Financial Officer,
of the effectiveness  of  the Company's disclosure controls and procedures as of
the end of this reporting period.  In  designing  and evaluating  the  Company's
disclosure  controls and  procedures,  the  Company and its management recognize
that  there  are  inherent  limitations  to  the  effectiveness of any system of
disclosure  controls and  procedures,  including the possibility of  human error
and  the  circumvention  or  overriding  of  the  controls  and  procedures.
Accordingly,  even  effective  disclosure  controls  and   procedures  can  only
provide reasonable assurance of  achieving  their  desired  control  objectives.
Additionally, in evaluating and implementing possible controls  and  procedures,
the Company's management was required  to  apply  its reasonable judgment. Based
upon the required evaluation,  the  Management  concluded  that  as of March 31,
2005,  the   Company's   disclosure   controls  and  procedures  were  effective
(at  the  "reasonable  assurance"  level  mentioned  above)   to   ensure   that
information  required to be  disclosed  by the Company in  the  reports it files
or submits  under  the Exchange  Act  is  recorded,  processed,  summarized  and
reported  within  the  time  periods  specified  in  the Securities and Exchange
Commission's rules and forms.

From  time  to  time,  the  Company  and  its management have conducted and will
continue  to  conduct  further  reviews  and,  from  time  to  time put in place
additional  documentation,  of the Company's disclosure controls and procedures,
as  well  as its internal control over financial reporting. The Company may from
time to  time  make  changes  aimed at enhancing their effectiveness, as well as
changes  aimed  at ensuring that the Company's systems evolve with, and meet the
needs of, the Company's business. These changes may include changes necessary or
desirable  to  address  recommendations of the Company's management, its counsel
and/or  its  independent   auditors,   including   any  recommendations  of  its
independent  auditors  arising  out of their audits and reviews of the Company's
financial  statements. These  changes  may include changes to the Company's own
systems,  as well as to the systems of businesses that the Company has acquired
or that the Company may acquire in the future and will, if made, be intended to
enhance the effectiveness of the Company's controls and procedures. The Company
is  also  continually  striving  to  improve  its  management  and  operational
efficiency  and  the  Company expects that its efforts in that regard will from
time  to  time  directly or indirectly affect the Company's disclosure controls
and  procedures,  as  well  as  the  Company's  internal control over financial
reporting.

Changes in Internal Control Over Financial Reporting

There have been no changes in the Company's internal controls or in
other factors that could  significantly  affect internal controls as of
March 31, 2006.

PART  II     -  OTHER  INFORMATION

LEGAL  PROCEEDINGS

From time  to time, we may be engaged in litigation in the ordinary  course  of
our  business or in respect of which we are insured or the cumulative effect of
which litigation our management does not believe  may reasonably be expected to
be materially adverse.  With  respect  to  existing  claims  or litigation, our
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management does not believe that they will have a  material  adverse  effect on
our   consolidated  financial  condition,  results  of  operations,  or  future
cash flows. (Please see the 2005 form 10KSB filed with SEC at www.sec.gov for
additional information.)

Exhibits
31.1                Certification pursuant to section 302 of the Sarbanes-Oxley
                    Act of 2002
32.1                Certification pursuant to section 906 of the Sarbanes-Oxley
                    Act of 2002
Signatures

Pursuant  to  the  requirements  of Section 12 of the Securities Exchange Act of
1934,  the  Registrant has duly caused this report to be signed on its behalf by
the  undersigned  thereunto  duly  authorized.

Meridian  Holdings,  Inc.

Date:  May 22,  2006           By:  /s/  Anthony  C.  Dike
                              ____________________________________Signature
                                        Anthony  C.  Dike
                                    Chief  Executive  officer


























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