PRESS RELEASE

IHHI RESTRUCTURES AGREEMENTS TO ACQUIRE FOUR TENET HOSPITALS IN ORANGE COUNTY

Friday January 28, 6:46 pm ET

COSTA MESA, Calif.--(BUSINESS WIRE)--Jan. 28, 2005--Integrated Healthcare
Holdings Inc. (IHHI) (OTCBB:IHCH - News) announced today that it has
restructured its agreements and financing arrangements related to its pending
acquisition of four Orange County, Calif., hospitals from subsidiaries of Tenet
Healthcare Corp. (NYSE:THC - News). The original agreement announced in
September 2004 involved a $70 million purchase and a targeted closing date in
2004. The transaction is now expected to close no later than Feb. 28, 2005,
pending approval and receipt of licenses from the California Department of
Health Services.

The company's outside financing arrangements have also been restructured so that
the primary equity financing will be provided by Orange County Physicians
Investment Network LLC (OC-PIN), a company founded by Dr. Anil V. Shah and owned
by a number of physicians practicing at the hospitals. OC-PIN will provide most
of the financing that was originally agreed to be provided by Dr. Kali
Chaudhuri. The financing agreements with Chaudhuri were rescinded, and Chaudhuri
and his associates will now receive warrants to acquire up to 24.9 percent of
the common stock of the company beginning 2 years after closing, subject to
approval of the California Department of Health Services (DHS). In addition,
OC-PIN and Chaudhuri will form a new real estate holding company to own and
operate certain real estate assets underlying the hospitals, with Chaudhuri
owning no more than 49 percent of the company. IHHI and the real estate holding
company expect to complete in the next few weeks their borrowing arrangements
for the balance of the purchase price and a working capital line of credit for
IHHI.

According to IHHI President Larry Anderson: "The restructured deal accelerates
our goal of providing an opportunity for the medical community to make a
substantial investment in the hospitals in which they provide service. The
restructured deal accelerates that goal and brings a significant number of
doctors into the deal from day one."

Anderson added: "This acquisition represents a fresh start and new beginning for
the four hospitals. We have worked very hard to make sure that this acquisition
is in the very best interests of all members of the community, including the
employees, the physicians and the shareholders. I believe that we have achieved
that and look forward to working with the staff and the community towards
achieving our mutual goals."

The four hospitals to be acquired are: 282-bed Western Medical Center -- Santa
Ana; 188-bed Western Medical Center -- Anaheim; 114-bed Chapman Medical Center
in Orange; and 178-bed Coastal Communities Hospital in Santa Ana. Together these
hospitals represent 12.1 percent of all hospital beds in Orange County.

After closing the transaction, IHHI plans to use its new financing resources to
upgrade and enhance the existing facilities. IHHI also intends to hire
substantially all current employees and management staff of the hospitals. The
company has negotiated equal or better benefit programs for employees and has
agreed to honor all employment contracts. Dan Brothman, currently chief
executive officer of Western Medical Center, will join IHHI as senior vice
president-operations, overseeing all four hospitals.

Integrated Healthcare Holdings Inc. is a publicly traded company based in Costa
Mesa. IHHI is led by a team of healthcare professionals skilled in the
management and operation of successful acute-care hospitals. The management team
is committed to providing quality patient care, recruiting, hiring and retaining
the best employees, listening and responding to the needs of patients, employees
and physicians, and ensuring that all stakeholders are involved in the decisions
which affect them.



This press release contains forward-looking statements. Forward-looking
statements are subject to certain risks and uncertainties that could cause
actual results to differ materially from those discussed or projected.
Statements in this press release regarding the business of Integrated Healthcare
Holdings Inc. which are not historical in nature, are "forward-looking
statements" that involve risks and uncertainties. Although we believe that the
expectations reflected in such forward-looking statements are reasonable, we can
give no assurance that such expectations will prove to have been correct. Actual
results may differ materially from those anticipated, estimated, or projected in
the forward-looking statements due to risks and uncertainties, including those
discussed in our Annual Report on Form 10-KSB under the caption "Risk Factors."
Readers are cautioned not to place undue reliance on forward-looking statements,
which speak only as of their dates.

Contact:

    Waters & Faubel for Integrated Healthcare Holdings Inc.
    Meg Waters, 949-768-1600
    Cell: 949-584-4977

Source: Integrated Healthcare Holdings Inc.