UNITED STATES
             SECURITIES AND EXCHANGE COMMISSION
                              
                   Washington, D.C. 20549
                              
                          FORM 8-K
                       CURRENT REPORT
                              
  Pursuant to Section 13 or 15(d) of theSecurities Exchange
                         Act of 1934
                              
                              
                              
  Date of Report (Date of earliest event reported)  May 21,
                            1999
                              


                COASTAL PHYSICIAN GROUP, INC.
   (Exact name of registrant as specified in its charter)
                              
                              
DELAWARE               001-13460                56-1379244
(State or other       (Commission             (IRS Employer
jurisdiction of       File Number)          Identification
incorporation)                                      No.)



2828 CROASDAILE DRIVE, DURHAM, NC                    27705
(Address of principal executive offices)          (Zip Code)


Registrant's telephone number including area code(919)383-0
355


                             N/A
(Former name or former address, if changed since last report
)
Item 5. - Other Events.

On May 21, 1999, the Registrant issued the news release
attached as an exhibit.

Item 7. Financial Statements and Exhibits.

Exhibits

Exhibit 99 - News Release dated May 21, 1999
                         SIGNATURES

Pursuant to the requirements of the Securities Exchange Act
of 1934, the registrant has duly caused this report to be
signed on its behalf by the undersigned hereunto duly
authorized.

                              COASTAL PHYSICIAN GROUP, INC.
                                         (Registrant)





Date:     May 21, 1999         By: /S/ Steven M. Scott, M.D.
                                       Steven M. Scott, M.D.
                                        President and Chief
                                        Executive Officer


Date:     May 21, 1999         By: /S/ W. Randall Dickerson
                                       W. Randall Dickerson
                                        Executive Vice
                                        President and Chief
                                        Financial Officer




















                        EXHIBIT INDEX

Exhibit 99 - News Release dated May 21, 1999

 COASTAL PHYSICIAN GROUP, INC. AGREES TO ACQUIRE OPERATIONS
             OF STERLING HEALTHCARE GROUP, INC.
            AS PART OF FPA PLAN OF REORGANIZATION
                              
                              
     DURHAM, NC, MAY 21, 1999 -- COASTAL PHYSICIAN GROUP,
INC. (OTC:ERDR) ("Coastal") today announced that it has
reached agreement to acquire the operations of Sterling
Healthcare Group, Inc. ("Sterling").  Sterling is a wholly
owned subsidiary of FPA Medical Management, Inc. ("FPA")
headquartered in Miami, Florida.  The proposed asset
purchase agreement and subsequent closing of the acquisition
are subject to review and approval by the United States
Bankruptcy Court for the District of Delaware under a plan
of reorganization proposed by FPA.  FPA filed for protection
from its creditors under Chapter 11 of the US Bankruptcy
Code in July 1998.  Sterling currently provides emergency
medicine practice management services to approximately 124
hospitals primarily in the southeastern United States.

     Based on the announcement in Court on May 20, 1999,
that all major creditor constituencies had approved the
proposed transaction in principle, Court approval is
expected as early as May 24, 1999.  Closing of the
transaction is expected to occur in June 1999.  The plan of
reorganization provides for the disposition of substantially
all of FPA's operations in a transaction valued at $108.2
million.  The FPA assets include, in addition to Sterling,
certain physician practice management and clinical
operations in Charlotte, Atlanta, Kansas City, San Antonio
and throughout the state of Florida.  The clinical
operations in Charlotte and Atlanta will be acquired by
Stoneybrook Capital, a separate entity owned by Steven M.
Scott, M.D., Chairman and Chief Executive Officer of
Coastal.  The other clinical operations will be acquired by
unrelated parties.

     As part of the proposed reorganization transaction,
Coastal will pay approximately $69 million and will assume
$20 million of certain current operating liabilities of
Sterling.  National Century Financial Enterprises, Inc.,
Dublin, Ohio has committed to provide financing to Coastal.

     Dr. Scott stated, "We believe that combining these two
organizations will create a powerful market presence.  The
addition of Sterling nearly doubles the size of Coastal's
emergency medicine business and positions Coastal as one of
the largest emergency medicine physician practice management
companies in the nation.  The driving force in both groups
has been providing outstanding care to patients, providing
the best possible services to our clients and maintaining
strong relationships with physicians.  This combination is
the product of the diligent efforts of the management of FPA
and Coastal and also their respective advisors under
extraordinarily difficult circumstances and time
constraints."

     Coastal Physician Group, Inc. is an emergency medicine
physician management company and provides certain core
competencies to physicians and hospitals throughout the
United States.
     
     Forward-looking Information or Statements:  Except
     for   statements  of  historical   fact,   certain
     statements  made  herein  are  forward-looking  in
     nature    and    are   inherently    subject    to
     uncertainties. The actual results of  the  Company
     may  differ materially from those reflected in the
     forward-looking statements based on  a  number  of
     important risk factors, including, but not limited
     to:  the level and timing of improvements  in  the
     combined  operations of the Company's  businesses;
     the  possibility that the Company may not be  able
     to  improve operations or execute its strategy  as
     planned;  and  other important  factors  discussed
     above  under "Other Trends and Uncertainties"  and
     disclosed from time to time in the Company's  Form
     10-K,  Form 10-Q and other Securities and Exchange
     Commission filings.