FORM 10-Q



                       SECURITIES AND EXCHANGE COMMISSION

                             Washington, D.C. 20549


          QUARTERLY REPORT UNDER SECTION 13 OR 15 (d) OF THE SECURITIES
                              EXCHANGE ACT OF 1934


(Mark One)
{ X }  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE
       SECURITIES EXCHANGE ACT OF 1934

                  For the quarterly period ended June 30, 2001

{   }  TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
       SECURITIES EXCHANGE ACT OF 1934

                  For the transition period from      to


For Quarter Ended     June 30, 2001       Commission file number   000-17596

         Meridian Healthcare Growth and Income Fund Limited Partnership
             (Exact Name of Registrant as Specified in its Charter)


        Delaware                                    52-1549486
(State or Other Jurisdiction of                  (I.R.S. Employer
Incorporation or Organization)                 Identification Number)



 225 East Redwood Street, Baltimore, Maryland                   21202
  (Address of Principal Executive Offices)                    (Zip Code)

   Registrant's Telephone Number, Including Area Code:     (410) 727-4083

                                       N/A
              (Former Name, Former Address, and Former 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 (or for such
shorter period that the registrant was required to file such reports),
and (2) has been subject to such filing requirements for the past 90
days.

                    Yes     X                             No


<PAGE>

         MERIDIAN HEALTHCARE GROWTH AND INCOME FUND LIMITED PARTNERSHIP


                                      INDEX


                                                                       Page No.

CAUTIONARY STATEMENT REGARDING FORWARD LOOKING STATEMENTS                     2

Part I.  Financial Information


     Item 1.  Financial Statements

              Consolidated Balance Sheets                                     3
              Consolidated Statements of Earnings                             4
              Consolidated Statements of Partners' Capital                    5
              Consolidated Statements of Cash Flows                           6
              Notes to Consolidated Financial Statements                    7-8


     Item 2.  Management's Discussion and Analysis of
                 Financial Condition and Results of Operations             9-12


     Item 3.  Quantitative and Qualitative Disclosures
                 About Market Risk                                           13

Part II.   Other Information


     Item 1. through Item 6.                                                 13

     Signatures                                                              14




<PAGE>

         MERIDIAN HEALTHCARE GROWTH AND INCOME FUND LIMITED PARTNERSHIP






            Cautionary Statement Regarding Forward Looking Statements



Certain statements contained herein, including certain statements in
"Management's Discussion and Analysis of Financial Condition and Results of
Operations" concerning the Fund's business outlook or future economic
performances, anticipated profitability, revenues, expenses or other financial
items together with other statements that are not historical facts are
"forward-looking statements" as that term is defined under the Federal
Securities Law. Forward-looking statements are necessarily estimates reflecting
the best judgement of the party making such statements based upon correct
information and involve a number of risks, uncertainties and other factors which
could cause actual results to differ materially from those stated in such
statements. Risks, uncertainties and factors which could affect the accuracy of
such forward looking statements are identified in the Fund's Prospectus and the
Fund's Registration Statement filed by the Fund with the Securities and Exchange
Commission, and forward looking statements contained herein or in other public
statements of the Fund should be considered in light of those factors. There can
be no assurance that factors will not affect the accuracy of such forward
looking statements.


                                      -2-
<PAGE>

         MERIDIAN HEALTHCARE GROWTH AND INCOME FUND LIMITED PARTNERSHIP
                           Consolidated Balance Sheets
                             (Dollars in thousands)

<TABLE>
<CAPTION>
                                                                              June 30,
                                                                                2001               December 31,
                                                                            (Unaudited)                2000
                                                                       ------------------      ------------------
Assets
Current Assets
<S>                                                                     <C>                     <C>
    Cash and cash equivalents                                           $           1,548       $           1,108
    Accounts receivable, net                                                        8,694                   8,990
    Estimated third-party payor settlements                                           553                     843
    Prepaid expenses                                                                  500                     650
                                                                        ------------------      ------------------
        Total current assets                                                       11,295                  11,591
                                                                        ------------------      ------------------

Property and equipment, net of accumulated depreciation                            32,446                  32,934
                                                                        ------------------      ------------------

Other assets
    Goodwill, net                                                                   4,364                   4,490
    Loan acquisition costs, net                                                       339                     383
                                                                        ------------------      ------------------
                                                                                    4,703                   4,873
                                                                        ------------------      ------------------


        Total assets                                                    $          48,444       $          49,398
                                                                        ==================      ==================

Liabilities and Partners' Capital
Current liabilities
    Current portion of long-term debt                                   $             452       $             397
    Accrued compensation and related costs                                            474                   1,055
    Accounts payable and other accrued expenses                                     4,353                   3,766
    Estimated third  party payor settlements                                        1,458                   1,328
                                                                        ------------------      ------------------
        Total current liabilities                                                   6,737                   6,546
                                                                        ------------------      ------------------

Deferred management fee payable                                                       958                     937
Loan payable to the Development General Partner                                     1,214                   1,188
Long-term debt                                                                     23,106                  23,379
                                                                        ------------------      ------------------
                                                                                   25,278                  25,504
                                                                        ------------------      ------------------

Partners' capital
    General partners                                                                 (152)                   (142)
    Assignee limited partners; 1,540,040
      units issued and outstanding                                                 16,581                  17,490
                                                                        ------------------      ------------------
        Total partners' capital                                                    16,429                  17,348
                                                                        ------------------      ------------------

        Total liabilities and
           partners' capital                                            $          48,444       $          49,398
                                                                        ==================      ==================
</TABLE>



          See accompanying notes to consolidated financial statements.

                                       -3-
<PAGE>
         MERIDIAN HEALTHCARE GROWTH AND INCOME FUND LIMITED PARTNERSHIP
                       Consolidated Statements of Earnings
                                   (Unaudited)
                 (Dollars in thousands except per unit amounts)

<TABLE>
<CAPTION>
                                                Three Months Ended                Six Months Ended
                                          ------------------------------   ------------------------------

                                             June 30,        June 30,         June 30,         June 30,
                                               2001            2000             2001             2000
                                          --------------   -------------   --------------   -------------

Revenues
<S>                                       <C>              <C>             <C>              <C>
   Medicaid and Medicare patients         $      11,648    $     11,099    $      23,267    $     21,866
   Private patients                               2,601           2,619            5,185           5,119
   Investment and other income                       42              83               90             153
                                          --------------   -------------   --------------   -------------
                                                 14,291          13,801           28,542          27,138
                                          --------------   -------------   --------------   -------------

Expenses
   Operating, including $2,322,  $1,988,
     $4,633 and $4,080 to related parties        11,716          10,656           23,435          21,396
   Management and administration fees
     to related parties                             784             897            1,570           1,762
   General and administrative                       239             277              473             497
   Depreciation and amortization                    563             585            1,122           1,131
   Interest expense                                 606             500            1,208             948
                                          --------------   -------------   --------------   -------------
                                                 13,908          12,915           27,808          25,734
                                          --------------   -------------   --------------   -------------

Net earnings                              $         383    $        886    $         734    $      1,404
                                          ==============   =============   ==============   =============


Net earnings per unit of assignee
   limited partnership interest-basic
   (computed based on 1,540,040
    units)                                $        0.25    $       0.57    $        0.47    $       0.90
                                          ==============   =============   ==============   =============

</TABLE>


           See accompanying notes to consolidated financial statements

                                       -4-
<PAGE>
         MERIDIAN HEALTHCARE GROWTH AND INCOME FUND LIMITED PARTNERSHIP
                  Consolidated Statements of Partners' Capital
                 For the Six Months Ended June 30, 2001 and 2000
                                   (Unaudited)
                              Dollars in thousands
<TABLE>
<CAPTION>
                                                                              Assignee
                                                            General            Limited
                                                            Partners          Partners            Total
                                                        ---------------   ----------------   ---------------

<S>                 <C> <C>                             <C>               <C>                <C>
Balance at December 31, 2000                            $         (142)   $        17,490    $       17,348

Net earnings                                                         7                727               734

Distributions to partners                                          (17)            (1,636)           (1,653)
                                                        ---------------   ----------------   ---------------

Balance at June 30, 2001                                $         (152)   $        16,581    $       16,429
                                                        ===============   ================   ===============





Balance at December 31, 1999                            $         (132)   $        18,504    $       18,372

Net earnings                                                        14              1,390             1,404

Distributions to partners                                          (17)            (1,636)           (1,653)
                                                        ---------------   ----------------   ---------------

Balance at June 30, 2000                                $         (135)   $        18,258    $       18,123
                                                        ===============   ================   ===============
</TABLE>



           See accompanying notes to consolidated financial statements

                                       -5-
<PAGE>
         MERIDIAN HEALTHCARE GROWTH AND INCOME FUND LIMTIED PARTNERSHIP
                      Consolidated Statements of Cash Flows
                        For the Six Months Ended June 30,
                                   (Unaudited)
                             (Dollars in thousands)
<TABLE>
<CAPTION>

                                                                              2001                 2000
                                                                       -----------------    -----------------
Cash flows from operating activities
<S>                                                                    <C>                  <C>
   Net earnings                                                        $            734     $          1,404
   Adjustments to reconcile net earnings to net
     cash provided by operating activities
       Depreciation and amortization                                              1,122                1,131
       Minority interest in net earnings of operating
         partnerships                                                                 9                   17
       Increase in loan payable to Development General Partner                       26                   26
       Increase in deferred management fee payable                                   21                   23
       Change in other assets and liabilities
         Accounts receivable                                                        287                 (683)
         Estimated third-party payor settlements                                    420                  186
         Prepaid expenses                                                           150                  (48)
         Accrued compensation and related costs                                    (581)                (282)
         Accounts payable and other accrued expenses                                590                 (281)
                                                                       -----------------    -----------------

Net cash provided by operating activities                                         2,778                1,493
                                                                       -----------------    -----------------

Cash flows from investing activities-
   additions to property and equipment                                             (467)                (479)
                                                                       -----------------    -----------------


Cash flows from financing activities
   Deferred financing fees                                                            -                  (84)
   Loan acquisition costs                                                             -                 (429)
   Net proceeds from issuance of long-term debt                                       -               24,000
   Repayment of long-term debt                                                     (218)             (22,711)
   Distributions to partners                                                     (1,653)              (1,653)
                                                                       -----------------    -----------------

Net cash used in financing activities                                            (1,871)                (877)
                                                                       -----------------    -----------------

Net increase in cash and cash equivalents                                           440                  137
Cash and cash equivalents
   Beginning of period                                                            1,108                2,511
                                                                       -----------------    -----------------

   End of period                                                       $          1,548     $          2,648
                                                                       =================    =================
</TABLE>


          See accompanying notes to consolidated financial statements.

                                       -6-

<PAGE>

         MERIDIAN HEALTHCARE GROWTH AND INCOME FUND LIMITED PARTNERSHIP



                   Notes to Consolidated Financial Statements
                                  June 30, 2001
                                   (Unaudited)


NOTE 1 - THE FUND AND BASIS OF PREPARATION

The Fund owns 98.99% limited partnership interests in each of the seven
operating partnerships. The Fund through its seven operating partnerships,
derives substantially all of its revenue from extended healthcare provided to
nursing center residents including room and board, nursing care, drugs and other
medical services.

The accompanying consolidated financial statements of Meridian Healthcare Growth
and Income Fund Limited Partnership (the "Fund") do not include all of the
information and note disclosures normally included in financial statements
prepared in accordance with accounting principles generally accepted in the
United States of America. The unaudited interim consolidated financial
statements reflect all adjustments which are, in the opinion of management,
necessary to a fair statement of the results for the interim periods presented.
All such adjustments are of a normal recurring nature. The unaudited interim
financial information contained in the consolidated financial statements should
be read in conjunction with the consolidated financial statements contained in
the 2000 Annual Report.

NOTE 2 - RELATED PARTY TRANSACTIONS

On June 22, 2000, Genesis Health Ventures, Inc. (Genesis) and certain of its
subsidiaries and affiliates filed petitions for Chapter 11 bankruptcy protection
with the U.S. Bankruptcy Court in Wilmington, Delaware. Meridian Healthcare,
Inc., which manages the Fund's nursing centers under the terms of management
agreements described below, is a wholly-owned subsidiary of Genesis and was
named as a debtor affiliate in the bankruptcy filing. Certain other subsidiaries
of Genesis which supply the Fund's nursing centers with drugs, medical supplies,
and other services as described below were also included in the bankruptcy
filing. The Genesis bankruptcy filing has not had an impact on the Fund's
operations, results of operations, or financial position.

The Fund is obligated to pay Brown-Healthcare, Inc. (Administrative General
Partner) an annual administration fee of the greater of $75,000 per year or 1/2
of 1% of the Fund's annual revenues. The nursing centers owned by the operating
partnerships are managed by Meridian Healthcare, Inc., an affiliate of Meridian
Healthcare Investments, Inc. (Development General Partner), under the terms of
existing management agreements which provide for management fees equal to 5% in
2001 and 6% in 2000 of the annual revenues of each nursing center. Certain of
the operating partnerships also purchase drugs and medical supplies and other
services from affiliates of the Development General Partner. Such purchases are
in turn billed to patients or third party payors at prices which on average
approximate the nursing center's cost.

Transactions with these related parties for the three and six months ended June
30, 2001 and 2000 are as follows:
<TABLE>
<CAPTION>
                                                    Three Months Ended                  Six Months Ended
                                             June 30, 2001     June 30, 2000     June 30, 2001     June 30, 2000

<S>                                            <C>               <C>               <C>              <C>
    Management and administration fees         $ 785,000         $ 897,000         $1,570,000       $1,762,000
    Drug and medical supplies purchases        1,013,000           835,000          2,096,000        1,722,000
    Nursing and rehabilitation services        1,309,000         1,153,000          2,537,000        2,358,000
    Interest expense on borrowings                22,000            24,000             43,000           48,000

</TABLE>


The Development General Partner loaned the Fund $597,000, as required by the
Cash Flow Deficit Guaranty Agreement, to support the operating deficits
generated by the Moorsesville, Salisbury and Woodlands nursing centers during
each center's first two years of operations subsequent to the Fund's acquisition
of partnership interests. Loans outstanding under an arrangement, including
accumulated interest from inception of the loan at 9% per annum, were $1,214,000
at June 30, 2001 and $1,188,000 at December 31, 2000. The Fund is obligated to
repay these loans when certain specified financial criteria are met, the most
significant of which is the payment of a preferred return to the assignee
limited partners as defined in the Fund's partnership agreement.

                                      -7-
<PAGE>
                   Notes to Consolidated Financial Statements
                                  June 30, 2001
                                   (Unaudited)


NOTE 3 - DEBT

The Fund closed its mortgage loan refinancing with a new bank for loans totaling
$24,000,000 on June 12, 2000. The renewal terms became effective on June 12,
2000 and provide for a term of five years at an interest rate of 9.75%. Monthly
payments of $229,886 are based on a 25-year amortization schedule with a balloon
payment due at the end of the 5-year term. Prior to the effective date of the
new loan terms on June 12, 2000, the mortgage loans bear interest at LIBOR plus
1.55%.

The Fund also replaced its $4,000,000 line of credit facility with the same
lender under the terms similar to the mortgage loan terms above.

NOTE 4 - NET EARNINGS PER UNIT OF ASSIGNEE LIMITED PARTNERSHIP INTEREST

Net earnings per unit of assignee limited partnership interest is disclosed on
the Consolidated Statements of Operations and is based upon 1,540,040 units.

                                      -8-
<PAGE>
         MERIDIAN HEALTHCARE GROWTH AND INCOME FUND LIMITED PARTNERSHIP

                Management's Discussion and Analysis of Financial
                       Condition and Results of Operations



Liquidity and Capital Resources

     The Fund closed its mortgage loan refinancing with a new bank for loans
totaling $24,000,000 on June 12, 2000. The renewal terms became effective on
June 12, 2000 and provide for a term of five years at an interest rate of 9.75%.
Monthly payments are based on a 25-year amortization schedule with a balloon
payment due at the end of the 5-year term.

     The Fund also replaced its $4,000,000 line of credit facility with the same
lender under terms similar to the mortgage loan term described above.

     The Fund's working capital (excluding the current portion of long-term
debt) decreased $144,000 to $5,010,000 at June 30, 2001 as compared to
$5,154,000 at March 31, 2001. The Fund has sufficient liquid assets and other
available credit resources to satisfy its operating expenditures and anticipated
routine capital improvements at each of the seven nursing home facilities.

     Cash flow from operating activities was $2,778,000 for the six-month period
ended June 30, 2001 as compared to $1,493,000 for the same period of 2000.

     Cash used from investing activities for the six-month period ended June 30,
2001 was $467,000 and included improvements to the Fund's seven operating
facilities. Similar improvements made during the first six months of 2000 were
$479,000.

     The Fund believes that the short-term liquidity needs will be met through
expected cash flow from operations and available working capital from the
existing line of credit.

     Between 1988 and 1989 the Development General Partner loaned the Fund
$597,000 to support operating deficits generated by the Mooresville, Salisbury
and Woodlands nursing centers during each centers' first two years of operation.
Loans outstanding under this arrangement, including interest at 9% per annum,
were $1,214,000 at June 30, 2001.

     On August 15, 2001 the Fund will make its second quarter 2001 distribution
to partners of $826,410. This distribution will be funded by second quarter
operations and reserves of approximately $136,000. Review of the second half of
the 2001 budget suggests that operations from the seven nursing centers will be
sufficient to fund a similar quarterly distribution throughout the remainder of
the year.

     The major challenge to the Fund in the foreseeable future is to control
operating expenses, to maintain a quality mix of patients and to increase the
overall census at each of the facilities.


Results of Operations

    Three Months Ended June 30, 2001 versus Three Months Ended June 30, 2000

     Net earnings for the Fund were $383,000 for the three months ended June 30,
2001 as compared to $886,000 for the same period in fiscal year 2000. The
decrease in earnings is primarily due to increased operating costs of the Fund
and an increase in interest expense due to refinancing, which took place in June
2000.

     Overall revenues of $14,291,000 increased $490,000 or 3.6% for the three
months ended June 30, 2001 compared to the same period in fiscal year 2000. The
increase in revenue is primarily due to an increase in revenues from Medicaid
and Medicare patients of $549,000. Medicaid revenue for the three months ended
June 30, 2001 increased $632,000 compared to the same period in the prior year.
The growth in revenue is primarily due to an overall Medicaid rate increase of
approximately 9.2% driven primarily by the four Maryland centers, which received
their annual Medicaid rate adjustment in July 2000. The Medicaid revenue
increase was partially offset by a Medicare revenue decrease of $83,000 due
primarily to a decrease in the number of Medicare customers.

                                      -9-
<PAGE>

Results of operations (continued)

     Second quarter 2001 expenses of $13,908,000 increased $993,000 or 7.7% from
the three months ended June 30, 2000.

     Operating expenses increased $1,060,000 or 9.9% in the second quarter of
2001 as compared to the same period in fiscal year 2000. This increase is
primarily due to the increased cost of nursing services and ancillary costs.
Nursing costs increased $648,000 for the three months ended June 30, 2001 as
compared to the same period in fiscal year 2000. This increase is primarily due
to increases in salary, wages, employee benefits, and an increase in the
utilization of temporary nurse staffing, which is being driven by the strong
market demand for nursing personnel. Salary, wage, and benefits expense for
nurses increased $412,000 and temporary nurse staffing expense increased
$236,000 for the three months ended June 30, 2001 compared to the same period in
fiscal year 2000. Second quarter ancillary expenses increased $106,000 or 6.1%
for the three months ended June 30, 2001 as compared to the same period in
fiscal year 2000. This increase is primarily due to higher ancillary utilization
and the increased utilization of Medicare Part B ancillary services. The
remaining increase in operating costs is due to general inflationary cost
increases.

     Management and administrative fees of $784,000 decreased $113,000 or
approximately 12.6% for the second quarter of 2001 compared to the same period
in fiscal year 2000. This decrease is due to an amendment to the management
agreement effective January 1, 2001, which reduced the management fee from 6% to
5% of net patient service revenue.

     Interest expense for the second quarter of 2001 increased $106,000 compared
to the same period in fiscal year 2000. This increase is due to refinancing of
the mortgage, increasing the beginning principal balance to $24,000,000 at an
interest rate of 9.75% effective June 12, 2000.

      Six Months Ended June 30, 2001 versus Six Months Ended June 30, 2000

     Net earnings for the Fund were $734,000 for the six months ended June 30,
2001 as compared to $1,404,000 for the same period in fiscal year 2000,
representing a decrease of $670,000 or 47.7%. The decrease in earnings is
primarily due to increased operating costs of the Fund and an increase in
interest expense due to refinancing, which took place in June 2000.

     Overall revenues of $28,542,000 increased $1,404,000 or 5.2% for the six
months ended June 30, 2001 as compared to the same period in fiscal year 2000.
This increase in revenue is primarily due to increases in revenue from Medicaid
and Medicare patients. Medicaid and Medicare revenue increased $1,401,000 to
$23,267,000 for the six month period ended June 30, 2001 compared to the same
period in 2000. Medicaid revenue for the six months ended June 30, 2001
increased $976,000 compared to the same period in the prior year. This increase
is primarily due to an overall Medicaid rate increase of approximately 9.0%
driven primarily by the four Maryland centers, which received their annual
Medicaid rate adjustment in July 2000. Medicare revenue increased $425,000 or
5.6% for the six month period ended June 30, 2001 compared to the same period in
fiscal year 2000. The increase in Medicare revenue is primarily due to a slight
increase in the Medicare census and the increased utilization of Medicare Part B
services. The Medicare average daily census increased 2.7 customers or 1.4% for
the six months ended June 30, 2001 compared to the six months ended June 30,
2000. Medicare Part B revenue increased $74,363 or 23.0% due to an increase in
Part B utilization.

     Overall expenses increased $2,074,000 or 8.1% to $27,808,000 for the six
months ended June 30, 2001 as compared to $25,734,000 for the same period in
fiscal year 2000.

                                      -10-
<PAGE>


Results of operations (continued)

     Operating expenses increased $2,039,000 or 9.5% to $23,435,000 for the six
months ended June 30, 2001 as compared to the same period in fiscal year 2000.
This increase is primarily due to the increased cost of nursing services and
ancillary costs. Nursing costs increased $1,128,000 for the six months ended
June 30, 2001 as compared to the same period in fiscal year 2000. This increase
is primarily due to increases in salary, wages, employee benefits, and an
increase in the utilization of temporary nurse staffing, which is being driven
by the strong market demand for nursing personnel. Salary, wage, and benefits
expense for nurses increased $ 888,000 and temporary nurse staffing expense
increased $240,000 for the six months ended June 30, 2001 compared to the same
period in fiscal year 2000. Ancillary expenses increased $357,000 or 10.3% for
the six months ended June 30, 2001 compared to the same period in fiscal year
2000. This increase is primarily due to the increase in Medicare census and the
increase utilization of Part B ancillary services. The remaining increase in
operating costs is due to general inflationary cost increases.

     Management and administrative fees of $1,570,000 decreased $192,000 or
approximately 10.9% for the six months ended June 30, 2001 compared to the same
period in fiscal year 2000. This decrease is due to an amendment to the
management agreement effective January 1, 2001, which reduced the management fee
from 6% to 5% of net patient service revenue.

     Interest expense for the six months ended June 30, 2001 increased $260,000
compared to the same period in fiscal year 2000. This increase is due to
refinancing of the mortgage which increased the beginning principal balance to
$24,000,000 at an interest rate of 9.75% effective June 12, 2000.

Legislative and Regulatory Issues

     Legislative and regulatory action has resulted in continuing changes in the
Medicare and Medicaid reimbursement programs. The changes have limited, and are
expected to continue to limit, payment increases under these programs. Also, the
timing of payments made under the Medicare and Medicaid programs is subject to
regulatory action and governmental budgetary constraints; in recent years the
time period between submission of claims and payment has increased. Within the
statutory framework of the Medicare and Medicaid programs, there are substantial
areas subject to administrative rulings and interpretations which may further
affect payments made under those programs. Further, the federal and state
governments may reduce the funds available under those programs in the future or
require more stringent utilization and quality review of eldercare centers of
other providers. There can be no assurances that adjustments from Medicare of
Medicaid audits will not have a material adverse effect on the Fund.

     On December 15, 2000, Congress passed the Benefit Improvement and
Protection Act of 2000 that, among other provisions, increases the nursing
component of Federal PPS rates by approximately 16.7% for the period from April
1, 2001 through September 30, 2002.

Recently Issued Accounting Pronouncements

        In July 2001, the FASB issued Statement No. 141, Business Combinations,
and Statement No. 142, Goodwill and Other Intangible Assets. Statement 141
requires that the purchase method of accounting be used for all business
combinations initiated after June 30, 2001 as well as all purchase method
business combinations completed after June 30, 2001. Statement 141 also
specifies criteria intangible assets acquired in a purchase method business
combination must meet to be recognized and reported apart from goodwill, noting
that any purchase price allocable to an assembled workforce may not be accounted
for separately. Statement 142 will require that goodwill and intangible assets
with indefinite useful lives no longer be amortized, but instead tested for
impairment at least annually in accordance with the provisions of Statement 142.
Statement 142 will also require that intangible assets with definite useful
lives be amortized over their respective estimated useful lives to their
estimated residual values, and reviewed for impairment in accordance with SAFS
No. 121, Accounting for the Impairment of Long-Lived Assets and for Long-Lived
Assets to Be Disposed Of.

                                      -11-
<PAGE>

Recently Issued Accounting Pronouncements (continued)

         The Company is required to adopt the provisions of Statement 141
immediately, except with regard to business combinations initiated prior to July
1, 2001, and Statement 142 effective January 1, 2002. Furthermore, any goodwill
and any intangible asset determined to have an indefinite useful life that are
acquired in a purchase business combination completed after June 30, 2001 will
not be amortized, but will continue to be evaluated for impairment in accordance
with the appropriate pre-Statement 142 accounting literature. Goodwill and
intangible assets acquired in business combinations completed before July 1,
2001 will continue to be amortized prior to the adoption of Statement 142.

        Because of the extensive effort needed to comply with adopting
Statements 141 and 142, it is not practicable to reasonably estimate the impact
of adopting these Statements on the Fund's financial statements at the date of
this report, including whether any transitional impairment losses will be
required to be recognized as the cumulative effect of a change in accounting
principle.


                                      -12-
<PAGE>

         MERIDIAN HEALTHCARE GROWTH AND INCOME FUND LIMITED PARTNERSHIP



                          PART I. FINANCIAL INFORMATION


Item 3.     Quantitative and Qualitative Disclosures About Market Risk

     The Fund has exposure to changing interest rates and is currently not
engaged in hedging activities. Interest on the Fund's 23.6 million mortgage is
at a fixed rate of 9.75%.





                           PART II. OTHER INFORMATION


Item 1.     Legal Proceedings

                  Inapplicable

Item 2.     Changes in Securities and Use of Proceeds

                  Inapplicable

Item 3.     Defaults upon Senior Securities

                  Inapplicable

Item 4.     Submission of Matters to a Vote of Security Holders

                  Inapplicable

Item 5.     Other Information

                  Inapplicable

Item 6.     Exhibits and Reports on Form 8-K

                  a)  Reports on Form 8-K:     None



                                      -13-
<PAGE>



         MERIDIAN HEALTHCARE GROWTH AND INCOME FUND LIMITED PARTNERSHIP


                                   SIGNATURES




Pursuant to the requirements of Section 13 or 15 (d) of the Securities Exchange
Act of 1934, as amended, the registrant has duly caused this report to be signed
on its behalf by the undersigned, thereunto duly authorized.


                                     MERIDIAN HEALTHCARE GROWTH AND INCOME FUND
                                                  LIMITED PARTNERSHIP




DATE:   8/9/01                        By:      /s/  John M. Prugh
                                          John M. Prugh
                                          President and Director
                                          Brown-Healthcare, Inc.
                                          Administrative General Partner





DATE:    8/9/01                       By:      /s/  Timothy M. Gisriel
                                          Timothy M. Gisriel
                                          Treasurer
                                          Brown-Healthcare, Inc.
                                          Administrative General Partner



















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