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EXHIBIT 99.1

CONTACT: Phyllis Goodman (media)
         Majorie Goldstein (investors)
         505-821-3355

               SUN HEALTHCARE GROUP AND RETIREMENT CARE ASSOCIATES
                             AMEND MERGER AGREEMENT

Albuquerque, N.M., and Atlanta, Ga., Nov. 26, 1997 - Sun Healthcare Group, Inc.
(NYSE:SHG) and Retirement Care Associates, Inc. (NYSE:RCA) announced today that
they have amended the terms of their merger agreement. The principal effect of
the amendment is to adjust the exchange ratio. The ratio will now be calculated
based on a fixed value of $10 for each outstanding share of RCA common stock,
subject to a 10 percent collar, centered on a $22 share price for Sun common
stock. Accordingly, the number of shares of Sun common stock that will be issued
for each share of RCA common stock is changed from O.520 to between 0.413 and
0.505, depending upon the average closing price of Sun's common stock during the
period specified in the agreement. The amendment also modifies some of the
conditions to provide greater certainty of closing of the transaction. The
boards of directors of Sun and of RCA have each approved the merger agreement
amendment.

         Sun also announced that it has reached an agreement in principle to
settle the pending class actions against RCA and its management for $9.0
million. The settlement is contingent on closing of the merger transaction.

         Sun originally entered into separate merger agreements with RCA and
Contour Medical, Inc. (Nasdaq SmallCap: CTMI) on Feb. 17, 1997. The parties
amended the terms of the RCA agreement on May 27, 1997, and both the RCA and the
Contour agreements on Aug. 21, 1997.

         RCA owns approximately 65 percent of the outstanding shares of Contour.
There have been no changes in the financial terms of the Contour merger
agreement, which provides for the payment of cash and/or stock consideration
with a value of $8.50 for each share of Contour common stock. Sun's merger
agreement with Contour has been amended primarily to match the RCA amendment in
extending the date after which either party may freely terminate the agreement
from Nov. 30, 1997 (or, under certain circumstances, Dec. 31, 1997) to March 31,
1998. The parties contemplate closing both transactions in the first quarter of
1998.

         Closing of the transactions is subject to the satisfaction of customary
conditions. The RCA acquisition is intended to be accounted for as a pooling of
interests. The Contour acquisition is intended to be accounted for as a
purchase.

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         Headquartered in Albuquerque, N.M., Sun Healthcare Group, Inc., is a
diversified international long-term care provider. Sun companies operate
long-term care facilities and pharmacy services across the United States, and in
the United Kingdom, Australia and Spain. Sun subsidiaries also provide therapy
services in the United States, fulfill the medical supply needs of nursing
homes, and offer a comprehensive array of ancillary services for the healthcare
industry.

         Atlanta, Ga.-based Retirement Care Associates, Inc. operates long-term
care, independent and assisted living facilities located primarily in the
southeastern United States. Contour Medical, Inc. is a national provider of
medical supplies for the long-term care industry.

         Except for historical information, all other matters in this press
release are forward-looking statements that involve risks and uncertainties as
detailed from time to time in the company's SEC filings, including Sun's annual
report on form 10-K for the fiscal year ended Dec. 31, 1996.

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