EXHIBIT 99.1
                         INTEGRATED HEALTHCARE HOLDINGS
                 RECEIVES NEW EQUITY INVESTMENT TO PAY DOWN DEBT


FOR IMMEDIATE RELEASE                             FOR MORE INFORMATION CONTACT:
                                                         EDWARD GYIMAH
                                                          (714)953-3503

SANTA ANA, Calif. - July 21, 2008 - On July 18, 2008, Integrated Healthcare
Holdings, Inc. (IHHI), a hospital management company that owns four hospital
facilities in Orange County, California, entered into a Securities Purchase
Agreement with Kali P. Chaudhuri, M.D. to provide additional equity investment
in the company.

Under the Securities Purchase Agreement, Dr. Chaudhuri agreed to invest up to
$10,700,000 in additional equity in IHHI. Dr. Chaudhuri has invested $3,731,732
through the exercise of outstanding warrants to purchase 24,878,213 shares of
common stock at an exercise price of $0.15 per share. In addition, Dr. Chaudhuri
paid an additional $50,000 for the right to invest up to an additional
$6,968,268 in IHHI through the purchase of 63,347,891 additional shares of
common stock at $0.11 per share. The purchase right can be exercised by Dr.
Chaudhuri from August 1, 2008 through January 10, 2009, and is subject to IHHI
satisfying certain conditions on or prior to closing. IHHI also agreed to
register for resale securities owned by Dr. Chaudhuri and William E. Thomas
following demand pursuant to the Securities Purchase Agreement. The Purchase
Agreement provides Dr. Chaudhuri and Mr. Thomas with certain pre-emptive rights
to maintain their respective levels of ownership of IHHI's common stock by
acquiring additional equity securities concurrent with future issuances by IHHI
of equity securities or securities or rights convertible into or exercisable for
equity securities. These pre-emptive and registration rights superseded and
replaced their existing pre-emptive and registration rights.

Concurrently with the execution of the Securities Purchase Agreement, IHHI and
its subsidiaries entered into an Early Loan Payoff Agreement with Medical
Provider Financial Corporation III, which holds a $10,700,000 convertible term
note issued by IHHI on October 9, 2007. Under the Early Loan Payoff Agreement,
IHHI used the proceeds from the warrant exercise, and will use any additional
proceeds that it receives from Dr. Chaudhuri, to pay down the $10,700,000
convertible term note.

Also under the Early Loan Payoff Agreement, Medical Provider Financial
Corporation I granted IHHI the right to extend the maturity date under its $80
Million Credit Agreement by one year, and Medical Provider Financial Corporation
II granted IHHI the right to extend the maturity date under its $50 Million
Credit Agreement by one year, subject to certain conditions including the full
early payoff of the $10,700,000 convertible term note. IHHI also provided
general releases, waivers and covenants not to sue to its lenders following the
payoff in full of the $80 Million Credit Agreement and/or $50 Million Credit
Agreement.



This press release is neither an offer to sell nor a solicitation of an offer to
buy any securities of IHHI and shall not constitute an offer, solicitation or
sale in any jurisdiction in which such offer, solicitation or sale is unlawful.
The securities discussed herein have not been registered under the Securities
Act of 1933, as amended (the "Securities Act"), or any state securities laws,
and unless so registered may not be offered or sold in the United States except
pursuant to an exemption from the registration requirements of the Securities
Act and applicable state laws.

About Integrated Healthcare Holdings, Inc.

IHHI is a hospital management company created to provide high-quality healthcare
services through the acquisition and management of financially distressed or
poorly performing healthcare facilities. In March 2005 IHHI acquired from Tenet
Healthcare Corp. four facilities representing approximately 12% of the hospital
beds in Orange County, California. Management's focus is on reducing overhead,
improving relationships with insurance companies and HMOs, and enhancing
financial and operating procedures, notably reduction of bad debt and collection
of accounts receivable and government reimbursements.

Safe Harbor for Forward Looking Statements

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-K under the caption "Risk Factors" and
the ability and willingness of the parties to the above-described transactions
to fulfill the various conditions to closing and effectiveness of certain
aspects of the transactions. Readers are cautioned not to place undue reliance
on forward-looking statements, which speak only as of their dates. IHHI assumes
no obligation to update any forward looking statements to reflect events or
circumstances occurring after the date of this press release.