SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 14A
Rule 14a-101
INFORMATION REQUIRED IN
PROXY STATEMENT
SCHEDULE 14A INFORMATION
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Coastal Physician Group, Inc.
_______________________________________________________
(Name of registrant as specified in its charter)
Steven M. Scott, M.D.
______________________________________________________
(Name of Person(s) Filing Proxy Statement)
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Steven M. Scott Coastal Management
Priority: Transactional Solution Priority: Operational Solu-
tion
Fall-Back Position: Operational Fall-Back Position: Transac-
Solution tional Solution
o Multiples in practice management o Return to "core business"
hospital based groups are expected
to decline
o Loss of "core business"
o Transactional solution removes or management and staff
lessens shareholder risk in event
failure of operational solution o Need to attract new business
o Stabilizes management o Need to attract new management
o Stabilizes staff o Need to control SGA
o Stabilizes key accounts o Loss of investment banker
(Morgan Stanley); failure to
o Assures continued quality care select new investment banker
for patients for more than one month
o Resolves management and o Inability to divest assets in
shareholder disputes orderly manner for more
than six months
o "Pooling" transaction
o Management confusion; unclear
line of authority
o Halts prospective sales of prime
assets to fund continuing losses o Continued substantial operating
while Coastal attempts to return losses; expect continuation
to "core business" while attempt return to "core
business"
o Losses for six months ended
June 30, 1996
o Lack of time and capital for
turnaround
o If operational solution fails,
transactional solution may
not be available
