FORM 4

__ Check this box if no longer
     subject to Section 16. Form 4
     or Form 5 obligations may
     continue. See Instruction 1(b).

(Print or Type Responses)

UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP

Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934, Section 17(a) of the Public Utility Holding Company Act of 1935 or Section 30(h) of the Investment Company Act of 1940

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1. Name and Address of Reporting Person* Pendergest Kevin W.	2. Issuer Name and Tickler or Trading Symbol Sun Healthcare Group, Inc. (SUHG.OB)						6. Relationship of Reporting Person(s) to Issuer (Check all applicable) _ _ Director ___ 10% Owner _X _ Officer (give title below) ___Other (specify below) Executive Vice President and Chief Financial Officer
(Last) (First) (Middle) 101 Sun Avenue	3. I.R.S. Identification Number of Reporting Person, if an entity (voluntary)			4. Statement for Month/Year September 10, 2002
(Street) Albuquerque, NM 87109				5. If Amendment, Date of Original (Month/Year)			7. Individual or Joint/Group Filing (Check Applicable Line) _X_ Form filed by One Reporting Person ___ Form filed by More than One Reporting Person
(City) (State) (Zip)	Table I - Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned
1. Title of Security (Instr. 3)	2. Transaction Date (Month/Day/Year)	2A. Deemed Execution Date, if any (Month/Day/Year)	3. Transaction Code (Instr. 8)		4. Securities Acquired (A) or Disposed of (D) (Instr. 3, 4 and 5)			5. Amount of Securities Beneficially Owned Following Reported Transaction(s) (Instr. 3 and 4)	6. Ownership Form: Direct (D) or Indirect (I) (Instr. 4)	7. Nature of Indirect Beneficial Ownership (Instr. 4)
1. Title of Security (Instr. 3)	2. Transaction Date (Month/Day/Year)	2A. Deemed Execution Date, if any (Month/Day/Year)	Code	V	Amount	(A) or (D)	Price
Common Stock	9/10/02		P		3,000	A	$5.60	3,000	I	By Pendergest Childrens Trust of 1991
Common Stock	9/10/02		P		4,500	A	$5.666	4,500	D

Table II - Derivative Securities Acquired, Disposed of, or Beneficially Owned
(e.g., puts, calls, warrants, options, convertible securities)

1.Title of
   Derivative
   Security
   (Instr.3)

2. Conversion      or Exercise
    Price of
    Derivative
    Security 3.Transaction Date
  (Month/Day/Year) 3A. Deemed
       Execution Date,
       if any
       (Month/Day/Year) 4.Transaction Code
   (Instr. 8) 5.Number of Derivative
   Securities Acquired
   (A) or Disposed of (D)
   (Instr. 3, 4 and 5) 6.Date Exerciseable
   and Expiration Date
(Month/Day/Year) 7.Title and Amount of
   Underlying Securities
   (Instr. 3 and 4) 8.Price of
   Derivative
   Security
   (Instr. 5) 9.Number of
   Derivative
   Securities
    Beneficially
    Owned
    Following
    Reported
    Transaction(s)
    (Instr. 4) 10.Ownership
     Form of
     Derivative
     Securities
     Beneficially
     Owned at
     End of Month
     (Instr. 4) 11.Nature of
     Indirect
     Beneficial
     Ownership
     (Instr. 4)

Code

(A)

(D)

Date Exercisable

Expiration Date

Title

Amount or Number of Shares

Option (Right to Buy)

$27.00

(1)

2/27/09

Common Stock

200,000 200,000

Explanation of Responses: (1) Vests at the rate of 20% on each of February 28, 2002, 2003, 2004, 2005 and 2006.
		/s/ Kevin W. Pendergest **Signature of Reporting Person	9/11/02 Date

Reminder:	Report on a separate line for each class of securities beneficially owned directly or indirectly.
*	If the form is filed by more than one reporting person, see Instruction 4(b)(v).
**	Intentional misstatements or omissions of facts constitute Federal Criminal Violations See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
Note:	File three copies of this Form, one of which must be manually signed. If space is insufficient, see Instruction 6 for procedure

PENDERGEST KEVIN W 4