Exhibit 99.1



February 14, 2007

Steve Blake
Chief Financial Officer
1301 N. Tustin Ave.
Santa Ana, CA 92705

Re:  Letter of Amendment to Employment Agreement

Dear Mr. Blake:

Pursuant to Section 11.9 of your Employment Agreement (the "Agreement"), dated
March 21, 2005, this shall serve as a written instrument signed by the parties
for the purpose of amending that Agreement. Therefore, effective today, February
14, 2007, the Agreement between Steve Blake and Integrated Healthcare Holdings,
Inc. ("IHHI") is hereby amended and restated in Section 4.1 to provide that,

In consideration of Executive's performance of all of his duties and
responsibilities hereunder and his observance of all of the covenants,
conditions and restrictions contained herein, Executive shall be entitled to
receive a base salary, commencing from February 14, 2007, through March 20,
2008, of Three Hundred Fifty Thousand Dollars ($350,000) per annum. The base
salary shall be payable in bi-weekly or other periodic installments in
accordance with the Company's payroll procedures in effect from time to time.
The base salary has been expressed in terms of a gross amount, and the Company
is or may be required to withhold from such gross amount deductions in respect
of federal, state or local income taxes, FICA and the like. Executive's base
salary for any renewal term hereof shall be determined by the Compensation
Committee of the Company's Board of Directors. Executive may receive base salary
increases for each succeeding year of this agreement as determined by the
Company's Board of Directors but in no event shall "Executive's" base salary be
decreased.

All other provisions of the Agreement are to remain the same.

Sincerely,

/s/ Bruce Mogel
--------------------------
Bruce Mogel
Chief Executive Officer


I hereby consent to this Amendment.

Signature:  /s/ Steve Blake
            -----------------------
Steve Blake, Executive