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<p class=MsoNormal align=center style='text-align:center'>As filed with the Securities and Exchange Commission on
June 30, 2006</p>

<p class=MsoNormal align=right style='text-align:right'>Registration No. ___________<br>
</p>

<hr noshade color="#000000">

<div align=center>

<table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0
 style='width:742;border-collapse:collapse' height="576">
 <tr>
  <td width=742 colspan=3 valign=top style='width:556.2pt;border:solid white 1.0pt;
  padding:0pt 0pt 0pt 0pt' height="51">
  <p class=MsoNormal align=center style='text-align:center;line-height:95%'><b>
  <font size="4">UNITED STATES<br>
  SECURITIES </font></b><font size="4"><b>AND</b></font><b><font size="4"> EXCHANGE COMMISSION</font></b></p>
  </td>
 </tr>
 <tr>
  <td width=742 colspan=3 valign=top style='width:556.2pt;border:solid white 1.0pt;
  border-top:none;padding:0pt 0pt 0pt 0pt' height="16">
  <p class=MsoNormal align=center style='text-align:center;line-height:95%'><b>Washington, D.C. 20549</b></p>
  </td>
 </tr>
 <tr>
  <td width=742 colspan=3 valign=top style='width:556.2pt;border:solid white 1.0pt;
  border-top:none;padding:0pt 0pt 0pt 0pt' height="2">
  <p class=MsoNormal align=center style='text-align:center;line-height:.5pt'><b>&nbsp;</b></p>
  </td>
 </tr>
 <tr>
  <td width=742 colspan=3 valign=top style='width:556.2pt;border:solid white 1.0pt;
  border-top:none;padding:0pt 0pt 0pt 0pt' height="13">
  <p class=MsoNormal align=center style='text-align:center;line-height:95%'><b>FORM S-8</b></p>
  </td>
 </tr>
 <tr>
  <td width=742 colspan=3 valign=top style='width:556.2pt;border:solid white 1.0pt;
  border-top:none;padding:0pt 0pt 0pt 0pt' height="16">
  <p class=MsoNormal align=center style='text-align:center;line-height:95%'><b>REGISTRATION STATEMENT</b></p>
  </td>
 </tr>
 <tr>
  <td width=742 colspan=3 valign=top style='width:556.2pt;border:solid white 1.0pt;
  border-top:none;padding:0pt 0pt 0pt 0pt' height="31">
  <p class=MsoNormal align=center style='text-align:center;line-height:95%'><b><i>Under<br>
  The Securities Act of 1933<br>
&nbsp;</i></b></p>
  </td>
 </tr>
 <tr>
  <td width=742 colspan=3 valign=top style='width:556.2pt;border:solid white 1.0pt;
  border-top:none;padding:0pt 0pt 0pt 0pt' height="2">
  <p class=MsoNormal align=center style='text-align:center;line-height:.5pt'></p>
  </td>
 </tr>
 <tr>
  <td width=742 colspan=3 valign=top style='width:556.2pt;border:solid white 1.0pt;
  border-top:none;padding:0pt 0pt 0pt 0pt' height="56">
  <h1 align="center"><font size="4">SUN HEALTHCARE GROUP, INC.<br>
  </font><font size="1">(Exact name of Registrant
  as specified in its charter)</font></h1>
  </td>
 </tr>
 <tr>
  <td width=742 colspan=3 valign=top style='width:556.2pt;border:solid white 1.0pt;
  border-top:none;padding:0pt 0pt 0pt 0pt' height="1">
  </td>
 </tr>
 <tr>
  <td width=742 colspan=3 valign=top style='width:556.2pt;border:solid white 1.0pt;
  border-top:none;padding:0pt 0pt 0pt 0pt' height="2">
  <p class=MsoNormal align=center style='text-align:center;line-height:.5pt'><b>&nbsp;</b></p>
  </td>
 </tr>
 <tr>
  <td valign=top style='border-left:1.0pt solid white; border-right:1.0pt solid white; border-bottom:1.0pt solid white; width:194;border-top:medium none;padding:0pt; ' height="16">
  <p class=MsoNormal align=center style='text-align:center;line-height:95%'><b>Delaware</b></p>
  </td>
  <td valign=top style='width:368;border-top:medium none;border-left:
  medium none;border-bottom:1.0pt solid white;border-right:1.0pt solid white;
  padding:0pt; ' height="16">
  <p class=MsoNormal align=center style='text-align:center;line-height:95%'><b>&nbsp;</b></p>
  </td>
  <td valign=top style='width:179;border-top:medium none;border-left:
  medium none;border-bottom:1.0pt solid white;border-right:1.0pt solid white;
  padding:0pt; ' height="16">
  <p class=MsoNormal align=center style='text-align:center;line-height:95%'><b>85-0410612</b></p>
  </td>
 </tr>
 <tr>
  <td valign=top style='border-left:1.0pt solid white; border-right:1.0pt solid white; border-bottom:1.0pt solid white; width:194;border-top:medium none;padding:0pt; ' height="31">
  <p class=MsoNormal align=center style='text-align:center;line-height:95%'>(State or other jurisdiction of<br>
  incorporation or organization)</p>
  </td>
  <td valign=top style='width:368;border-top:medium none;border-left:
  medium none;border-bottom:1.0pt solid white;border-right:1.0pt solid white;
  padding:0pt; ' height="31">
  <p class=MsoNormal align=center style='text-align:center;line-height:95%'><b>&nbsp;</b></p>
  </td>
  <td valign=top style='width:179;border-top:medium none;border-left:
  medium none;border-bottom:1.0pt solid white;border-right:1.0pt solid white;
  padding:0pt; ' height="31">
  <p class=MsoNormal align=center style='text-align:center;line-height:95%'>(I.R.S. Employer<br>
  Identification Number<b>)</b></p>
  </td>
 </tr>
 <tr>
  <td valign=top style='border-left:1.0pt solid white; border-right:1.0pt solid white; border-bottom:1.0pt solid white; width:194;border-top:medium none;padding:0pt; ' height="50">
  <p class=MsoNormal style='line-height:3.6pt'><b>&nbsp;</b></p>

  </td>
  <td valign=top style='width:368;border-top:medium none;border-left:
  medium none;border-bottom:1.0pt solid white;border-right:1.0pt solid white;
  padding:0pt; ' height="50">

  <p class=MsoNormal align=center style='text-align:center;line-height:95%'><b>18831
  Von Karman, Suite 400<br>
  Irvine, California 92612<br>
&nbsp;</b></p>
  </td>
  <td valign=top style='width:179;border-top:medium none;border-left:
  medium none;border-bottom:1.0pt solid white;border-right:1.0pt solid white;
  padding:0pt; ' height="50">
  <p class=MsoNormal style='line-height:3.6pt'><b>&nbsp;</b></p>

  </td>
 </tr>
 <tr>
  <td width=742 colspan=3 valign=top style='width:556.2pt;border:solid white 1.0pt;
  border-top:none;padding:0pt 0pt 0pt 0pt' height="16">
  <p class=MsoNormal align=center style='text-align:center;line-height:95%'>
  <font size="1">(Address, including zip code of
  Registrant's principal executive offices)</font></p>
  </td>
 </tr>
 <tr>
  <td width=742 colspan=3 valign=top style='width:556.2pt;border:solid white 1.0pt;
  border-top:none;padding:0pt 0pt 0pt 0pt' height="2">
  <p class=MsoNormal align=center style='text-align:center;line-height:.5pt'><b>&nbsp;</b></p>
  </td>
 </tr>
 <tr>
  <td width=742 colspan=3 valign=top style='width:556.2pt;border:solid white 1.0pt;
  border-top:none;padding:0pt 0pt 0pt 0pt' height="50">
  <p class=MsoNormal align=center style='text-align:center;line-height:95%'><b>
  <br>
  <font size="4">SUN HEALTHCARE GROUP, INC.<br>
  2004 EQUITY INCENTIVE PLAN</font></b></p>
  </td>
 </tr>
 <tr>
  <td width=742 colspan=3 valign=top style='width:556.2pt;border:solid white 1.0pt;
  border-top:none;padding:0pt 0pt 0pt 0pt' height="31">
  <p class=MsoNormal align=center style='text-align:center;line-height:95%'>(Full title of the plan)<br>
  <br>
  </p>
  </td>
 </tr>
 <tr>
  <td width=742 colspan=3 valign=top style='width:556.2pt;border:solid white 1.0pt;
  border-top:none;padding:0pt 0pt 0pt 0pt' height="4">
  <p class=MsoNormal align=center style='text-align:center;line-height:.5pt'></p>
  </td>
 </tr>
 <tr>
  <td valign=top style='border-left:1.0pt solid white; border-right:1.0pt solid white; border-bottom:1.0pt solid white; width:194;border-top:medium none;padding:0pt; ' height="106">

  </td>
  <td valign=top style='width:368;border-top:medium none;border-left:
  medium none;border-bottom:1.0pt solid white;border-right:1.0pt solid white;
  padding:0pt; ' height="106">
  <p class=MsoNormal align=center style='text-align:center;line-height:95%'><b>Michael
  Newman, Esq.<br>
  Executive Vice President and General Counsel<br>
  Sun Healthcare Group, Inc.<br>
  18831 Von Karman, Suite 400<br>
  Irvine, California 92612<br>
  (949) 255-7100</b></p>
  </td>
  <td valign=top style='width:179;border-top:medium none;border-left:
  medium none;border-bottom:1.0pt solid white;border-right:1.0pt solid white;
  padding:0pt; ' height="106">

  </td>
 </tr>
 <tr>
  <td width=742 colspan=3 valign=top style='width:556.2pt;border:solid white 1.0pt;
  border-top:none;padding:0pt 0pt 0pt 0pt' height="16">
  <p class=MsoNormal align=center style='text-align:center;line-height:95%'>(Name, address, including zip code,
  and telephone number, including area code, of agent for service)</p>
  </td>
 </tr>
 <tr>
  <td width=742 colspan=3 valign=top style='width:556.2pt;border:solid white 1.0pt;
  border-top:none;padding:0pt 0pt 0pt 0pt' height="4">
  <p class=MsoNormal align=center style='text-align:center;line-height:.5pt'></p>
  </td>
 </tr>
 <tr>
  <td valign=top style='border-left:1.0pt solid white; border-right:1.0pt solid white; border-bottom:1.0pt solid white; width:194;border-top:medium none;padding:0pt; ' height="16">

  </td>
  <td valign=top style='width:368;border-top:medium none;border-left:
  medium none;border-bottom:1.0pt solid white;border-right:1.0pt solid white;
  padding:0pt; ' height="16">
  <p class=MsoNormal align=center style='text-align:center;line-height:95%'><i>Copies
  to:</i></p>
  </td>
  <td valign=top style='width:179;border-top:medium none;border-left:
  medium none;border-bottom:1.0pt solid white;border-right:1.0pt solid white;
  padding:0pt; ' height="16">

  </td>
 </tr>
 <tr>
  <td valign=top style='border-left:1.0pt solid white; border-right:1.0pt solid white; border-bottom:1.0pt solid white; width:194;border-top:medium none;padding:0pt; ' height="97">

  <p class=MsoNormal align=center style='text-align:center;line-height:95%'><b>&nbsp;</b></p>
  </td>
  <td valign=top style='width:368;border-top:medium none;border-left:
  medium none;border-bottom:1.0pt solid white;border-right:1.0pt solid white;
  padding:0pt; ' height="97">
  <p class=MsoNormal style='line-height:1.4pt'><b>&nbsp;</b></p>
  <p class=MsoNormal align=center style='text-align:center;line-height:95%'><b>Richard
  A. Boehmer, Esq.<br>
  O'Melveny &amp; Myers LLP<br>
  400 South Hope Street<br>
  Los Angeles, California 90071<br>
  (213) 430-6643</b></p>
  </td>
  <td valign=top style='width:179;border-top:medium none;border-left:
  medium none;border-bottom:1.0pt solid white;border-right:1.0pt solid white;
  padding:0pt; ' height="97">
  <p class=MsoNormal style='line-height:1.4pt'><b>&nbsp;</b></p>
  <p class=MsoNormal align=center style='text-align:center;line-height:95%'><b>&nbsp;</b></p>
  </td>
 </tr>
 <tr>
  <td width=742 colspan=3 valign=top style='width:556.2pt;border:solid white 1.0pt;
  border-top:none;padding:0pt 0pt 0pt 0pt' height="1">
  <p class=MsoNormal align=center style='margin-bottom:4.3pt;text-align:center;
  line-height:95%'></p>
  </td>
 </tr>
</table>

</div>

<p class=MsoNormal align=center style='text-align:center;line-height:95%'>CALCULATION
OF REGISTRATION FEE</p>

<table border="1" cellpadding="0" cellspacing="0" style="border-collapse: collapse" bordercolor="#111111" width="89%" id="AutoNumber1">
  <tr>
    <td width="24%" align="center" valign="top"><b><font size="1">Title of
    Securities<br>
    To be Registered</font></b></td>
    <td width="15%" align="center" valign="top"><font size="1"><b>Amount<br>
    to be<br>
    Registered</b></font></td>
    <td width="22%" align="center" valign="top"><font size="1"><b>Proposed<br>
    Maximum<br>
    Offering<br>
    Price<br>
    Per Share</b></font></td>
    <td width="20%" align="center" valign="top"><font size="1"><b>Proposed<br>
    Maximum<br>
    Aggregate<br>
    Offering<br>
    Price</b></font></td>
    <td width="19%" align="center" valign="top"><font size="1"><b>Amount of<br>
    Registration<br>
    Fee</b></font></td>
  </tr>
  <tr>
    <td width="24%"><font size="1">Common Stock<br>
    &nbsp;&nbsp;&nbsp;$0.01 par value .....................</font></td>
    <td width="15%">
    <p align="center"><font size="1">3,500,000 shares (1)</font></td>
    <td width="22%">
    <p align="center"><font size="1">$(2)</font></td>
    <td width="20%">
    <p align="center"><font size="1">$(2)</font></td>
    <td width="19%">
    <p align="center"><font size="1">$</font></td>
  </tr>
</table>



<table class=MsoTableGrid border=0 cellspacing=0 cellpadding=0
 style='border-collapse:collapse' width="723">
 <tr>
  <td valign=top style='width:31;padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt'>
  <p class=MsoNormal style='margin-right:-49.5pt'><font size="1"><br>
  (1)</font></p>
  </td>
  <td valign=top style='width:581;padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt'>
  <p class=MsoNormal style='margin-right:-49.5pt'><font size="1"><br>
  This
  Registration Statement covers, in addition to the number of shares of Sun
  Healthcare Group, Inc. (the &quot;Company&quot; or the
  &quot;Registrant&quot;), common stock, par value $0.01 per share (the
  &quot;Common Stock&quot;), stated above, options and other rights to purchase
  or acquire the shares of Common Stock covered by this Registration Statement
  and, pursuant to Rule 416(c) under the Securities Act of 1933, as amended
  (the &quot;Securities Act&quot;), an additional indeterminate number of
  shares, options and rights that may be offered or issued pursuant to the Sun
  Healthcare Group, Inc. 2004 Equity Incentive Plan, as amended (the &quot;Plan&quot;),
  as a result of one or more adjustments under the Plan to prevent dilution
  resulting from one or more stock splits, stock dividends or similar
  transactions.&nbsp; The number of shares of Common Stock covered by this
  Registration Statement represent additional shares that have been added to
  the shares available for issuance under the Plan.</font></p>
  </td>
 </tr>
 <tr>
  <td valign=top style='width:31;padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt'>

  </td>
  <td valign=top style='width:581;padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt'>

  </td>
 </tr>
 <tr>
  <td valign=top style='width:31;padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt'>
  <p class=MsoNormal style='margin-right:-36.0pt'><font size="1"><br>
  (2)</font></p>
  </td>
  <td valign=top style='width:581;padding-left:5.4pt; padding-right:5.4pt; padding-top:0pt; padding-bottom:0pt'>
  <p class=MsoNormal style='margin-right:-36.0pt'><font size="1"><br>
  Estimated
  in accordance with Rule 457(h) of the Securities Act of 1933, as amended,
  solely for the purpose of computing the amount of the registration fee based
  on the average of the high and low prices of the Common Stock as reported on
  the Nasdaq National Market on June 30 2006.</font></p>
  </td>
 </tr>
</table>



<hr color="#000080">










<p class=MsoNormal align=center style='margin-bottom:12.0pt;text-align:center;
line-height:90%'><b>EXPLANATORY
NOTE</b></p>

<p class=MsoNormal style='margin-bottom:12.0pt;text-indent:36.0pt;line-height:
90%'>&nbsp;This Registration Statement
is filed by the Company to register additional securities issuable pursuant to
the Plan and consists of only those items required by General Instruction E to
Form S-8.</p>

<p class=MsoNormal><b>PART
I&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;INFORMATION
REQUIRED IN THE SECTION 10(a) PROSPECTUS</b></p>

<p class=MsoNormal><b>&nbsp;</b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
documents containing the information specified in Part I of Form S-8 (plan
information and registrant information) will be sent or given to employees as
specified by Securities Act Rule 428(b)(1).&nbsp; Such documents need not be filed
with the Securities and Exchange Commission (the &quot;Commission&quot;),
either as part of this Registration Statement or as prospectuses or prospectus
supplements pursuant to Securities Act Rule 424.&nbsp; These documents, which
include the statement of availability required by Item 2 of Form S-8, and the
documents incorporated by reference in this Registration Statement pursuant to
Item 3 of Form S-8 (Part II hereof), taken together, constitute a prospectus
that meets the requirements of Section 10(a) of the Securities Act.</p>

<p class=MsoNormal><b>&nbsp;PART
II</b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>INFORMATION
REQUIRED IN THE REGISTRATION STATEMENT</b></p>



<p class=MsoNormal style='text-align:justify'><b>&nbsp;Item
3.</b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Incorporation
of Documents by Reference.</b></p>

<p class=MsoNormal style='text-align:justify'><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</b>The
Company has filed with the Commission the
Company's Registration Statement on Form S-8 on May 25, 2004 (Registration No.
333-115851) with respect to the Plan, the contents of which are incorporated
herein by reference.</p>

<p class=MsoNormal style='margin-top:0pt;margin-right:0pt;margin-bottom:12.0pt;
margin-left:72.0pt;text-indent:-72.0pt;page-break-after:avoid'><b>&nbsp;Item 5.</b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Interests
of Named Experts and Counsel</b></p>

<p class=MsoBodyText style='text-indent:36.0pt'>Not applicable.</p>





<p class=MsoNormal style='text-align:justify'><b>Item
8.</b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Exhibits.</b></p>



<div align=right>

<table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0
 style='border-collapse:collapse'>
 <tr>
  <td width=84 valign=top style='width:63.0pt;border:solid white 1.0pt;
  padding:0pt 6.0pt 0pt 6.0pt'>

  <p class=MsoNormal align=center style='text-align:center'><b>Exhibit<br>
  Number</b></p>
  <p class=MsoNormal align=center style='margin-bottom:2.9pt;text-align:center;
  line-height:.5pt'><b>&nbsp;</b></p>
  </td>
  <td width=524 valign=top style='width:392.75pt;border:solid white 1.0pt;
  border-left:none;padding:0pt 6.0pt 0pt 6.0pt'>
  <p class=MsoNormal style='line-height:6.0pt'><b>&nbsp;</b></p>
  <p class=MsoNormal align=center style='text-align:center'><b>Description<br>
  </b></p>
  </td>
 </tr>
 <tr>
  <td width=84 valign=top style='width:63.0pt;border:solid white 1.0pt;
  border-top:none;padding:0pt 6.0pt 0pt 6.0pt'>
  <p class=MsoNormal style='line-height:6.0pt' align="right">4.1</p>
  </td>
  <td width=524 valign=top style='width:392.75pt;border-top:none;border-left:
  none;border-bottom:solid white 1.0pt;border-right:solid white 1.0pt;
  padding:0pt 6.0pt 0pt 6.0pt'>

  <p class=MsoNormal style='margin-bottom:2.9pt'>Sun
  Healthcare Group, Inc. 2004 Equity Incentive Plan, as amended.&nbsp; (Filed as
  Exhibit&nbsp;A to the Company's Proxy Statement filed with the Commission on April 21, 2006
  (Commission File No. 1-12040) and incorporated herein by reference).</p>
  </td>
 </tr>
 <tr>
  <td width=84 valign=top style='width:63.0pt;border:solid white 1.0pt;
  border-top:none;padding:0pt 6.0pt 0pt 6.0pt'>

  <p class=MsoNormal align=right style='margin-bottom:2.9pt;text-align:right'>5.1</p>
  </td>
  <td width=524 valign=top style='width:392.75pt;border-top:none;border-left:
  none;border-bottom:solid white 1.0pt;border-right:solid white 1.0pt;
  padding:0pt 6.0pt 0pt 6.0pt'>

  <p class=MsoNormal style='margin-bottom:2.9pt'>Opinion
  of O'Melveny &amp; Myers LLP with respect to the securities being registered.</p>
  </td>
 </tr>
 <tr>
  <td width=84 valign=top style='width:63.0pt;border:solid white 1.0pt;
  border-top:none;padding:0pt 6.0pt 0pt 6.0pt'>

  <p class=MsoNormal align=right style='margin-bottom:2.9pt;text-align:right'>23.1</p>
  </td>
  <td width=524 valign=top style='width:392.75pt;border-top:none;border-left:
  none;border-bottom:solid white 1.0pt;border-right:solid white 1.0pt;
  padding:0pt 6.0pt 0pt 6.0pt'>

  <p class=MsoNormal style='margin-bottom:2.9pt'>Consent
  of Ernst&nbsp;&amp; Young LLP.</p>
  </td>
 </tr>
 <tr>
  <td width=84 valign=top style='width:63.0pt;border:solid white 1.0pt;
  border-top:none;padding:0pt 6.0pt 0pt 6.0pt'>

  </td>
  <td width=524 valign=top style='width:392.75pt;border-top:none;border-left:
  none;border-bottom:solid white 1.0pt;border-right:solid white 1.0pt;
  padding:0pt 6.0pt 0pt 6.0pt'>

  </td>
 </tr>
 <tr>
  <td width=84 valign=top style='width:63.0pt;border:solid white 1.0pt;
  border-top:none;padding:0pt 6.0pt 0pt 6.0pt'>

  <p class=MsoNormal align=right style='margin-bottom:2.9pt;text-align:right'>23.2</p>
  </td>
  <td width=524 valign=top style='width:392.75pt;border-top:none;border-left:
  none;border-bottom:solid white 1.0pt;border-right:solid white 1.0pt;
  padding:0pt 6.0pt 0pt 6.0pt'>

  <p class=MsoNormal style='margin-bottom:2.9pt'>Consent
  of KPMG LLP.</p>
  </td>
 </tr>
 <tr>
  <td width=84 valign=top style='width:63.0pt;border:solid white 1.0pt;
  border-top:none;padding:0pt 6.0pt 0pt 6.0pt'>

  </td>
  <td width=524 valign=top style='width:392.75pt;border-top:none;border-left:
  none;border-bottom:solid white 1.0pt;border-right:solid white 1.0pt;
  padding:0pt 6.0pt 0pt 6.0pt'>

  </td>
 </tr>
 <tr>
  <td width=84 valign=top style='width:63.0pt;border:solid white 1.0pt;
  border-top:none;padding:0pt 6.0pt 0pt 6.0pt'>

  <p class=MsoNormal align=right style='margin-bottom:2.9pt;text-align:right'>23.3</p>
  </td>
  <td width=524 valign=top style='width:392.75pt;border-top:none;border-left:
  none;border-bottom:solid white 1.0pt;border-right:solid white 1.0pt;
  padding:0pt 6.0pt 0pt 6.0pt'>

  <p class=MsoNormal style='margin-bottom:2.9pt'>Consent
  of O'Melveny &amp; Myers LLP (included in Exhibit 5.1).</p>
  </td>
 </tr>
 <tr>
  <td width=84 valign=top style='width:63.0pt;border:solid white 1.0pt;
  border-top:none;padding:0pt 6.0pt 0pt 6.0pt'>

  <p class=MsoNormal align=right style='margin-bottom:2.9pt;text-align:right'>24.1</p>
  </td>
  <td width=524 valign=top style='width:392.75pt;border-top:none;border-left:
  none;border-bottom:solid white 1.0pt;border-right:solid white 1.0pt;
  padding:0pt 6.0pt 0pt 6.0pt'>

  <p class=MsoNormal style='margin-bottom:2.9pt'>Power
  of Attorney (see page 3).</p>
  </td>
 </tr>
</table>

</div>



<p align="center">2</p>



<hr color="#000080">










<p class=MsoBodyText align=center style='text-align:center;text-indent:0pt'><b>SIGNATURES</b></p>

<p class=MsoBodyText>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Pursuant to the
requirements of the Securities Act of 1933, as amended, the Registrant certifies
that it has reasonable grounds to believe that it meets all of the requirements
for filing on Form S-8 and has duly caused this Registration Statement to be
signed on its behalf by the undersigned, thereunto duly authorized, in the City
of Irvine, State of California, on this 28th day of June 2006.</p>

<table class=MsoTableGrid border=0 cellspacing=0 cellpadding=0
 style='margin-left:209.4pt;border-collapse:collapse'>
 <tr>
  <td width=359 valign=top style='width:269.4pt;padding:0pt 5.4pt 0pt 5.4pt'>
  <p class=MsoNormal>SUN HEALTHCARE GROUP, INC. </p>
  </td>
 </tr>
 <tr>
  <td width=359 valign=top style='width:269.4pt;padding:0pt 5.4pt 0pt 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=359 valign=top style='width:269.4pt;padding:0pt 5.4pt 0pt 5.4pt'>

  </td>
 </tr>
 <tr>
  <td width=359 valign=top style='width:269.4pt;padding:0pt 5.4pt 0pt 5.4pt'>
  &nbsp;</td>
 </tr>
 <tr>
  <td width=359 valign=top style='width:269.4pt;padding:0pt 5.4pt 0pt 5.4pt'>
  &nbsp;</td>
 </tr>
 <tr>
  <td width=359 valign=top style='width:269.4pt;padding:0pt 5.4pt 0pt 5.4pt'>
  <p class=MsoNormal>By:<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;/s/
  Richard K.
  Matros&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u></p>
  </td>
 </tr>
 <tr>
  <td width=359 valign=top style='width:269.4pt;padding:0pt 5.4pt 0pt 5.4pt'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Richard
  K. Matros </p>
  </td>
 </tr>
 <tr>
  <td width=359 valign=top style='width:269.4pt;padding:0pt 5.4pt 0pt 5.4pt'>
  <p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Chairman
  of the Board and Chief Executive Officer</p>
  </td>
 </tr>
</table>

<p class=MsoBodyText align=center style='text-align:center;text-indent:0pt'><b><br>
POWER OF ATTORNEY</b></p>

<p class=MsoBodyText>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; KNOW ALL PERSONS BY THESE PRESENTS, that each person whose
signature appears below constitutes and appoints Richard K. Matros and Michael
Newman, jointly and severally, as his or her attorney-in-fact and agent, each
with full power of substitution and resubstitution, for him and in his name,
place and stead, in any and all capacities, to sign any and all amendments
(including post-effective amendments) to this Registration Statement, and to
file the same, with exhibits thereto and other documents in connection
therewith, with the Securities and Exchange Commission, granting unto said
attorneys-in-fact and agents, and each of them, full power and authority to do
and perform each and every act and thing requisite and necessary to be done in
connection therewith, as fully and to all intents and purposes as he might or
could do in person, hereby ratifying and confirming all that said attorneys-in-fact
and agents, or any of them, or their or his substitute, may lawfully do or
cause to be done by virtue hereof.</p>

<p class=MsoBodyText>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Pursuant to the
requirements of the Securities Act of 1933, this registration statement has
been signed by the following persons in the capacities and on the dates
indicated.</p>












<table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0
 style='border-collapse:collapse'>
 <tr>
  <td width=213 valign=top style='width:159.6pt;padding:0pt 5.4pt 0pt 5.4pt'>
  <p class=MsoBodyText style='margin-bottom:0pt;margin-bottom:.0001pt;
  text-indent:0pt;page-break-after:avoid'><u>Signature</u></p>
  </td>
  <td width=258 valign=top style='width:193.8pt;padding:0pt 5.4pt 0pt 5.4pt'>
  <p class=MsoBodyText style='margin-bottom:0pt;margin-bottom:.0001pt;
  text-indent:0pt'><u>Title</u></p>
  </td>
  <td width=167 valign=top style='width:125.4pt;padding:0pt 5.4pt 0pt 5.4pt'>
  <p class=MsoBodyText style='margin-bottom:0pt;margin-bottom:.0001pt;
  text-indent:0pt'><u>Date</u></p>
  </td>
 </tr>
 <tr>
  <td width=213 valign=top style='width:159.6pt;padding:0pt 5.4pt 0pt 5.4pt'>
  <p class=MsoBodyText style='margin-top:12.0pt;margin-right:0pt;margin-bottom:
  0pt;margin-left:0pt;margin-bottom:.0001pt;text-indent:0pt'><u>&nbsp;&nbsp;/s/ Richard K. Matros&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u><br>
  Richard K. Matros</p>
  </td>
  <td width=258 valign=top style='width:193.8pt;padding:0pt 5.4pt 0pt 5.4pt'>
  <p class=MsoBodyText style='margin-top:12.0pt;margin-right:0pt;margin-bottom:
  0pt;margin-left:0pt;margin-bottom:.0001pt;text-indent:0pt'>Chairman of the Board and Chief Executive Officer
  (Principal Executive Officer)</p>
  </td>
  <td width=167 valign=top style='width:125.4pt;padding:0pt 5.4pt 0pt 5.4pt'>
  <p class=MsoBodyText style='margin-top:12.0pt;margin-right:0pt;margin-bottom:
  0pt;margin-left:0pt;margin-bottom:.0001pt;text-indent:0pt'>June 28, 2006</p>
  </td>
 </tr>
 <tr>
  <td width=213 valign=top style='width:159.6pt;padding:0pt 5.4pt 0pt 5.4pt'>
  <p class=MsoBodyText style='margin-top:12.0pt;margin-right:0pt;margin-bottom:
  0pt;margin-left:0pt;margin-bottom:.0001pt;text-indent:0pt'><u>&nbsp;&nbsp;&nbsp;/s/
  L. Bryan Shaul&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u><br>
  L.
  Bryan Shaul</p>
  </td>
  <td width=258 valign=top style='width:193.8pt;padding:0pt 5.4pt 0pt 5.4pt'>
  <p class=MsoBodyText style='margin-top:12.0pt;margin-right:0pt;margin-bottom:
  0pt;margin-left:0pt;margin-bottom:.0001pt;text-indent:0pt'>Executive Vice President and Chief Financial Officer
  (Principal Financial and Accounting Officer)</p>
  </td>
  <td width=167 valign=top style='width:125.4pt;padding:0pt 5.4pt 0pt 5.4pt'>
  <p class=MsoBodyText style='margin-top:12.0pt;margin-right:0pt;margin-bottom:
  0pt;margin-left:0pt;margin-bottom:.0001pt;text-indent:0pt'>June 28, 2006</p>
  </td>
 </tr>
 <tr>
  <td width=213 valign=top style='width:159.6pt;padding:0pt 5.4pt 0pt 5.4pt'>
  <p class=MsoBodyText style='margin-top:12.0pt;margin-right:0pt;margin-bottom:
  0pt;margin-left:0pt;margin-bottom:.0001pt;text-indent:0pt'><u>&nbsp;&nbsp;/s/ Gregory Anderson&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u><br>
  Gregory S. Anderson</p>
  </td>
  <td width=258 valign=top style='width:193.8pt;padding:0pt 5.4pt 0pt 5.4pt'>
  <p class=MsoBodyText style='margin-top:12.0pt;margin-right:0pt;margin-bottom:
  0pt;margin-left:0pt;margin-bottom:.0001pt;text-indent:0pt'>Director</p>
  </td>
  <td width=167 valign=top style='width:125.4pt;padding:0pt 5.4pt 0pt 5.4pt'>
  <p class=MsoBodyText style='margin-top:12.0pt;margin-right:0pt;margin-bottom:
  0pt;margin-left:0pt;margin-bottom:.0001pt;text-indent:0pt'>June 28, 2006</p>
  </td>
 </tr>
 <tr>
  <td width=213 valign=top style='width:159.6pt;padding:0pt 5.4pt 0pt 5.4pt'>
  <p class=MsoBodyText style='margin-top:12.0pt;margin-right:0pt;margin-bottom:
  0pt;margin-left:0pt;margin-bottom:.0001pt;text-indent:0pt'><u>&nbsp;&nbsp;/s/
  Tony M. Astorga&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u><br>
  Tony M. Astorga</p>
  </td>
  <td width=258 valign=top style='width:193.8pt;padding:0pt 5.4pt 0pt 5.4pt'>
  <p class=MsoBodyText style='margin-top:12.0pt;margin-right:0pt;margin-bottom:
  0pt;margin-left:0pt;margin-bottom:.0001pt;text-indent:0pt'>Director</p>
  </td>
  <td width=167 valign=top style='width:125.4pt;padding:0pt 5.4pt 0pt 5.4pt'>
  <p class=MsoBodyText style='margin-top:12.0pt;margin-right:0pt;margin-bottom:
  0pt;margin-left:0pt;margin-bottom:.0001pt;text-indent:0pt'>June 28, 2006</p>
  </td>
 </tr>
 <tr>
  <td width=213 valign=top style='width:159.6pt;padding:0pt 5.4pt 0pt 5.4pt'>
  <p class=MsoBodyText style='margin-top:12.0pt;margin-right:0pt;margin-bottom:
  0pt;margin-left:0pt;margin-bottom:.0001pt;text-indent:0pt'><u>&nbsp;&nbsp;/s/ Christian K.
  Bement&nbsp;&nbsp;&nbsp;&nbsp;</u><br>
  Christian K. Bement</p>
  </td>
  <td width=258 valign=top style='width:193.8pt;padding:0pt 5.4pt 0pt 5.4pt'>

  <p class=MsoBodyText style='margin-top:12.0pt;margin-right:0pt;margin-bottom:
  0pt;margin-left:0pt;margin-bottom:.0001pt;text-indent:0pt'>Director</p>
  </td>
  <td width=167 valign=top style='width:125.4pt;padding:0pt 5.4pt 0pt 5.4pt'>

  <p class=MsoBodyText style='margin-top:12.0pt;margin-right:0pt;margin-bottom:
  0pt;margin-left:0pt;margin-bottom:.0001pt;text-indent:0pt'>June 28, 2006</p>
  </td>
 </tr>
</table>



<p class=MsoBodyText align="center">3</p>



<hr color="#000080">












<table class=MsoNormalTable border=0 cellspacing=0 cellpadding=0
 style='border-collapse:collapse'>
 <tr>
  <td width=213 valign=top style='width:159.6pt;padding:0pt 5.4pt 0pt 5.4pt'>
  <p class=MsoBodyText style='margin-top:12.0pt;margin-right:0pt;margin-bottom:
  0pt;margin-left:0pt;margin-bottom:.0001pt;text-indent:0pt'><u>&nbsp;&nbsp;/s/
  Michael J. Foster&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<br>
  </u>Michael J. Foster</p>
  </td>
  <td width=258 valign=top style='width:193.8pt;padding:0pt 5.4pt 0pt 5.4pt'>
  <p class=MsoBodyText style='margin-top:12.0pt;margin-right:0pt;margin-bottom:
  0pt;margin-left:0pt;margin-bottom:.0001pt;text-indent:0pt'>Director</p>
  </td>
  <td width=167 valign=top style='width:125.4pt;padding:0pt 5.4pt 0pt 5.4pt'>
  <p class=MsoBodyText style='margin-top:12.0pt;margin-right:0pt;margin-bottom:
  0pt;margin-left:0pt;margin-bottom:.0001pt;text-indent:0pt'>June 28, 2006</p>
  </td>
 </tr>
 <tr>
  <td width=213 valign=top style='width:159.6pt;padding:0pt 5.4pt 0pt 5.4pt'>
  <p class=MsoBodyText style='margin-top:12.0pt;margin-right:0pt;margin-bottom:
  0pt;margin-left:0pt;margin-bottom:.0001pt;text-indent:0pt'><u>&nbsp;&nbsp;/s/ Barbara B. Kennelly&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<br>
  </u>Barbara B. Kennelly</p>
  </td>
  <td width=258 valign=top style='width:193.8pt;padding:0pt 5.4pt 0pt 5.4pt'>
  <p class=MsoBodyText style='margin-top:12.0pt;margin-right:0pt;margin-bottom:
  0pt;margin-left:0pt;margin-bottom:.0001pt;text-indent:0pt'>Director</p>
  </td>
  <td width=167 valign=top style='width:125.4pt;padding:0pt 5.4pt 0pt 5.4pt'>
  <p class=MsoBodyText style='margin-top:12.0pt;margin-right:0pt;margin-bottom:
  0pt;margin-left:0pt;margin-bottom:.0001pt;text-indent:0pt'>June 28, 2006</p>
  </td>
 </tr>
 <tr>
  <td width=213 valign=top style='width:159.6pt;padding:0pt 5.4pt 0pt 5.4pt'>
  <p class=MsoBodyText style='margin-top:12.0pt;margin-right:0pt;margin-bottom:
  0pt;margin-left:0pt;margin-bottom:.0001pt;text-indent:0pt'><u>&nbsp;&nbsp;/s/ Steven M. Looney&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<br>
  </u>Steven M. Looney</p>
  </td>
  <td width=258 valign=top style='width:193.8pt;padding:0pt 5.4pt 0pt 5.4pt'>
  <p class=MsoBodyText style='margin-top:12.0pt;margin-right:0pt;margin-bottom:
  0pt;margin-left:0pt;margin-bottom:.0001pt;text-indent:0pt'>Director</p>
  </td>
  <td width=167 valign=top style='width:125.4pt;padding:0pt 5.4pt 0pt 5.4pt'>
  <p class=MsoBodyText style='margin-top:12.0pt;margin-right:0pt;margin-bottom:
  0pt;margin-left:0pt;margin-bottom:.0001pt;text-indent:0pt'>June 28, 2006</p>
  </td>
 </tr>
 <tr>
  <td width=213 valign=top style='width:159.6pt;padding:0pt 5.4pt 0pt 5.4pt'>
  <p class=MsoBodyText style='margin-top:12.0pt;margin-right:0pt;margin-bottom:
  0pt;margin-left:0pt;margin-bottom:.0001pt;text-indent:0pt'><u>&nbsp;/s/ Keith
  W. Pennell&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<br>
  </u>Keith W. Pennell</p>
  </td>
  <td width=258 valign=top style='width:193.8pt;padding:0pt 5.4pt 0pt 5.4pt'>
  <p class=MsoBodyText style='margin-top:12.0pt;margin-right:0pt;margin-bottom:
  0pt;margin-left:0pt;margin-bottom:.0001pt;text-indent:0pt'>Director</p>
  </td>
  <td width=167 valign=top style='width:125.4pt;padding:0pt 5.4pt 0pt 5.4pt'>
  <p class=MsoBodyText style='margin-top:12.0pt;margin-right:0pt;margin-bottom:
  0pt;margin-left:0pt;margin-bottom:.0001pt;text-indent:0pt'>June 28, 2006</p>
  </td>
 </tr>
 <tr>
  <td width=213 valign=top style='width:159.6pt;padding:0pt 5.4pt 0pt 5.4pt'>
  <p class=MsoBodyText style='margin-top:12.0pt;margin-right:0pt;margin-bottom:
  0pt;margin-left:0pt;margin-bottom:.0001pt;text-indent:0pt'><u>&nbsp;&nbsp;/s/ Milton J. Walters&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u><br>
  Milton J. Walters</p>
  </td>
  <td width=258 valign=top style='width:193.8pt;padding:0pt 5.4pt 0pt 5.4pt'>
  <p class=MsoBodyText style='margin-top:12.0pt;margin-right:0pt;margin-bottom:
  0pt;margin-left:0pt;margin-bottom:.0001pt;text-indent:0pt'>Director</p>
  </td>
  <td width=167 valign=top style='width:125.4pt;padding:0pt 5.4pt 0pt 5.4pt'>
  <p class=MsoBodyText style='margin-top:12.0pt;margin-right:0pt;margin-bottom:
  0pt;margin-left:0pt;margin-bottom:.0001pt;text-indent:0pt'>June 28, 2006</p>
  </td>
 </tr>
</table>



<p class="MsoBodyText" style="text-indent: 0pt; margin-left: 0pt; margin-right: 0pt; margin-top: 12.0pt; margin-bottom: .0001pt" align="center">
4</p>



<hr color="#000080">










<p class=MsoBodyText align=center style='margin-bottom:0pt;margin-bottom:.0001pt;
text-align:left;text-indent:0pt;page-break-after:avoid'><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Index to Exhibits</b></p>
















<table class=MsoTableGrid border=0 cellspacing=0 cellpadding=0
 style='border-collapse:collapse'>
 <tr>
  <td width=127 valign=top style='width:95.4pt;padding:0pt 5.4pt 0pt 5.4pt'>
  <p class=MsoBodyText style='margin-bottom:0pt;margin-bottom:.0001pt;
  text-indent:0pt;page-break-after:avoid' align="center"><b>Exhibit<br>
  Number</b></p>
  </td>
  <td width=496 valign=top style='width:372.0pt;padding:0pt 5.4pt 0pt 5.4pt'>
  <p class=MsoBodyText style='margin-bottom:0pt;margin-bottom:.0001pt;
  text-indent:0pt;page-break-after:avoid' align="center"><br>
  <b>Description</b></p>
  </td>
 </tr>
 <tr>
  <td width=127 valign=top style='width:95.4pt;padding:0pt 5.4pt 0pt 5.4pt'>
  &nbsp;</td>
  <td width=496 valign=top style='width:372.0pt;padding:0pt 5.4pt 0pt 5.4pt'>
  &nbsp;</td>
 </tr>
 <tr>
  <td width=127 valign=top style='width:95.4pt;padding:0pt 5.4pt 0pt 5.4pt' align="right">
  <p class=MsoBodyText style='text-indent:0pt'>&nbsp;4.1</p>
  </td>
  <td width=496 valign=top style='width:372.0pt;padding:0pt 5.4pt 0pt 5.4pt'>
  Sun
  Healthcare Group, Inc. 2004 Equity Incentive Plan, as amended.&nbsp; (Filed as
  Exhibit A to the Company's Proxy Statement filed with the Commission on April 21, 2006
  (Commission File No. 1-12040) and incorporated herein by reference).<br>
&nbsp;</td>
 </tr>
 <tr>
  <td width=127 valign=top style='width:95.4pt;padding:0pt 5.4pt 0pt 5.4pt' align="right">
  <p class=MsoBodyText style='text-indent:0pt'>&nbsp;5.1</p>
  </td>
  <td width=496 valign=top style='width:372.0pt;padding:0pt 5.4pt 0pt 5.4pt'>
  Opinion
  of O'Melveny &amp; Myers LLP with respect to the securities being registered.<br>
&nbsp;</td>
 </tr>
 <tr>
  <td width=127 valign=top style='width:95.4pt;padding:0pt 5.4pt 0pt 5.4pt' align="right">
  <p class=MsoBodyText style='text-indent:0pt'>&nbsp;23.1</p>
  </td>
  <td width=496 valign=top style='width:372.0pt;padding:0pt 5.4pt 0pt 5.4pt'>
  Consent
  of Ernst&nbsp;&amp; Young LLP.<br>
&nbsp;</td>
 </tr>
 <tr>
  <td width=127 valign=top style='width:95.4pt;padding:0pt 5.4pt 0pt 5.4pt' align="right">
  <p class=MsoBodyText style='text-indent:0pt'>&nbsp;23.2</p>
  </td>
  <td width=496 valign=top style='width:372.0pt;padding:0pt 5.4pt 0pt 5.4pt'>
  Consent
  of KPMG LLP.<br>
&nbsp;</td>
 </tr>
 <tr>
  <td width=127 valign=top style='width:95.4pt;padding:0pt 5.4pt 0pt 5.4pt' align="right">
  <p class=MsoBodyText style='text-indent:0pt'>&nbsp;23.3</p>
  </td>
  <td width=496 valign=top style='width:372.0pt;padding:0pt 5.4pt 0pt 5.4pt'>
  Consent
  of O'Melveny &amp; Myers LLP (included in Exhibit 5.1).<br>
&nbsp;</td>
 </tr>
 <tr>
  <td width=127 valign=top style='width:95.4pt;padding:0pt 5.4pt 0pt 5.4pt' align="right">
  <p class=MsoBodyText style='text-indent:0pt'>&nbsp;24.1</p>
  </td>
  <td width=496 valign=top style='width:372.0pt;padding:0pt 5.4pt 0pt 5.4pt'>
  Power
  of Attorney (see page 3).</td>
 </tr>
 </table>





<p class="MsoBodyText" style="text-indent: 0pt; margin-bottom: .0001pt" align="center">
5</p>



<hr color="#000080">












</body>

</html>
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{"company-data": {"conformed-name": "SUN HEALTHCARE GROUP INC", "cik": "0000904978", "assigned-sic": "8051", "irs-number": "850410612", "state-of-incorporation": "DE", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "S-8", "act": "33", "file-number": "333-135525", "film-number": "06937560"}, "business-address": {"street1": "101 SUN AVENUE N E", "city": "ALBUQUERQUE", "state": "NM", "zip": "87109", "phone": "5058213355"}, "mail-address": {"street1": "101 SUN LANE N E", "city": "ALBUQERQUE", "state": "NM", "zip": "87109"}}
As filed with the Securities and Exchange Commission on
June 30, 2006
Registration No. ___________
UNITED STATES
SECURITIES
AND
EXCHANGE COMMISSION
Washington, D.C. 20549
FORM S-8
REGISTRATION STATEMENT
Under
The Securities Act of 1933
SUN HEALTHCARE GROUP, INC.
(Exact name of Registrant
  as specified in its charter)
Delaware
85-0410612
(State or other jurisdiction of
incorporation or organization)
(I.R.S. Employer
Identification Number
)
18831
  Von Karman, Suite 400
Irvine, California 92612
(Address, including zip code of
  Registrant's principal executive offices)
SUN HEALTHCARE GROUP, INC.
2004 EQUITY INCENTIVE PLAN
(Full title of the plan)
Michael
  Newman, Esq.
Executive Vice President and General Counsel
Sun Healthcare Group, Inc.
18831 Von Karman, Suite 400
Irvine, California 92612
(949) 255-7100
(Name, address, including zip code,
  and telephone number, including area code, of agent for service)
Copies
  to:
Richard
  A. Boehmer, Esq.
O'Melveny & Myers LLP
400 South Hope Street
Los Angeles, California 90071
(213) 430-6643
CALCULATION
OF REGISTRATION FEE
Title of
    Securities
To be Registered
Amount
to be
Registered
Proposed
Maximum
Offering
Price
Per Share
Proposed
Maximum
Aggregate
Offering
Price
Amount of
Registration
Fee
Common Stock
$0.01 par value .....................
3,500,000 shares (1)
$(2)
$(2)
$
(1)
This
  Registration Statement covers, in addition to the number of shares of Sun
  Healthcare Group, Inc. (the "Company" or the
  "Registrant"), common stock, par value $0.01 per share (the
  "Common Stock"), stated above, options and other rights to purchase
  or acquire the shares of Common Stock covered by this Registration Statement
  and, pursuant to Rule 416(c) under the Securities Act of 1933, as amended
  (the "Securities Act"), an additional indeterminate number of
  shares, options and rights that may be offered or issued pursuant to the Sun
  Healthcare Group, Inc. 2004 Equity Incentive Plan, as amended (the "Plan"),
  as a result of one or more adjustments under the Plan to prevent dilution
  resulting from one or more stock splits, stock dividends or similar
  transactions.  The number of shares of Common Stock covered by this
  Registration Statement represent additional shares that have been added to
  the shares available for issuance under the Plan.
(2)
Estimated
  in accordance with Rule 457(h) of the Securities Act of 1933, as amended,
  solely for the purpose of computing the amount of the registration fee based
  on the average of the high and low prices of the Common Stock as reported on
  the Nasdaq National Market on June 30 2006.
EXPLANATORY
NOTE
This Registration Statement
is filed by the Company to register additional securities issuable pursuant to
the Plan and consists of only those items required by General Instruction E to
Form S-8.
PART
I          INFORMATION
REQUIRED IN THE SECTION 10(a) PROSPECTUS
The
documents containing the information specified in Part I of Form S-8 (plan
information and registrant information) will be sent or given to employees as
specified by Securities Act Rule 428(b)(1).  Such documents need not be filed
with the Securities and Exchange Commission (the "Commission"),
either as part of this Registration Statement or as prospectuses or prospectus
supplements pursuant to Securities Act Rule 424.  These documents, which
include the statement of availability required by Item 2 of Form S-8, and the
documents incorporated by reference in this Registration Statement pursuant to
Item 3 of Form S-8 (Part II hereof), taken together, constitute a prospectus
that meets the requirements of Section 10(a) of the Securities Act.
PART
II
INFORMATION
REQUIRED IN THE REGISTRATION STATEMENT
Item
3.
Incorporation
of Documents by Reference.
The
Company has filed with the Commission the
Company's Registration Statement on Form S-8 on May 25, 2004 (Registration No.
333-115851) with respect to the Plan, the contents of which are incorporated
herein by reference.
Item 5.
Interests
of Named Experts and Counsel
Not applicable.
Item
8.
Exhibits.
Exhibit
Number
Description
4.1
Sun
  Healthcare Group, Inc. 2004 Equity Incentive Plan, as amended.  (Filed as
  Exhibit A to the Company's Proxy Statement filed with the Commission on April 21, 2006
  (Commission File No. 1-12040) and incorporated herein by reference).
5.1
Opinion
  of O'Melveny & Myers LLP with respect to the securities being registered.
23.1
Consent
  of Ernst & Young LLP.
23.2
Consent
  of KPMG LLP.
23.3
Consent
  of O'Melveny & Myers LLP (included in Exhibit 5.1).
24.1
Power
  of Attorney (see page 3).
2
SIGNATURES
Pursuant to the
requirements of the Securities Act of 1933, as amended, the Registrant certifies
that it has reasonable grounds to believe that it meets all of the requirements
for filing on Form S-8 and has duly caused this Registration Statement to be
signed on its behalf by the undersigned, thereunto duly authorized, in the City
of Irvine, State of California, on this 28th day of June 2006.
SUN HEALTHCARE GROUP, INC.
By:
/s/
  Richard K.
  Matros
Richard
  K. Matros
Chairman
  of the Board and Chief Executive Officer
POWER OF ATTORNEY
KNOW ALL PERSONS BY THESE PRESENTS, that each person whose
signature appears below constitutes and appoints Richard K. Matros and Michael
Newman, jointly and severally, as his or her attorney-in-fact and agent, each
with full power of substitution and resubstitution, for him and in his name,
place and stead, in any and all capacities, to sign any and all amendments
(including post-effective amendments) to this Registration Statement, and to
file the same, with exhibits thereto and other documents in connection
therewith, with the Securities and Exchange Commission, granting unto said
attorneys-in-fact and agents, and each of them, full power and authority to do
and perform each and every act and thing requisite and necessary to be done in
connection therewith, as fully and to all intents and purposes as he might or
could do in person, hereby ratifying and confirming all that said attorneys-in-fact
and agents, or any of them, or their or his substitute, may lawfully do or
cause to be done by virtue hereof.
Pursuant to the
requirements of the Securities Act of 1933, this registration statement has
been signed by the following persons in the capacities and on the dates
indicated.
Signature
Title
Date
/s/ Richard K. Matros
Richard K. Matros
Chairman of the Board and Chief Executive Officer
  (Principal Executive Officer)
June 28, 2006
/s/
  L. Bryan Shaul
L.
  Bryan Shaul
Executive Vice President and Chief Financial Officer
  (Principal Financial and Accounting Officer)
June 28, 2006
/s/ Gregory Anderson
Gregory S. Anderson
Director
June 28, 2006
/s/
  Tony M. Astorga
Tony M. Astorga
Director
June 28, 2006
/s/ Christian K.
  Bement
Christian K. Bement
Director
June 28, 2006
3
/s/
  Michael J. Foster
Michael J. Foster
Director
June 28, 2006
/s/ Barbara B. Kennelly
Barbara B. Kennelly
Director
June 28, 2006
/s/ Steven M. Looney
Steven M. Looney
Director
June 28, 2006
/s/ Keith
  W. Pennell
Keith W. Pennell
Director
June 28, 2006
/s/ Milton J. Walters
Milton J. Walters
Director
June 28, 2006
4
Index to Exhibits
Exhibit
Number
Description
4.1
Sun
  Healthcare Group, Inc. 2004 Equity Incentive Plan, as amended.  (Filed as
  Exhibit A to the Company's Proxy Statement filed with the Commission on April 21, 2006
  (Commission File No. 1-12040) and incorporated herein by reference).
5.1
Opinion
  of O'Melveny & Myers LLP with respect to the securities being registered.
23.1
Consent
  of Ernst & Young LLP.
23.2
Consent
  of KPMG LLP.
23.3
Consent
  of O'Melveny & Myers LLP (included in Exhibit 5.1).
24.1
Power
  of Attorney (see page 3).
5