Sun Healthcare expects major revenue loss  Posted: Monday,
February 08, 1999  ALBUQUERQUE (AP) - It was only a year ago
when Sun Healthcare Group earned a record $2 billion in revenue
and was seeking new acquisitions to expand its growing base.
But plummeting stock prices and changes in federal health care
policy has the country's third-largest nursing home operator
looking for ways to regain its financial health.  The
Albuquerque-based company's stock slid from $20 a share last
February to less than $2 last week. In response, the company has
cut 7,500 jobs and is imposing a companywide wage freeze.  The
company expects $200 million less in revenue this year because
of a new federal formula that is rocking the nursing home
industry by cutting reimbursement for Medicare patients.  Last
week, Sun issued a statement warning of a "significant loss"
during the fourth quarter and said it expects to make several
changes, including a financial adjustment for money dedicated to
severance packages for laid-off employe