Yikes. Let's hope nothing bad happens. From what I understand, that hospital is pretty crucial to Western students and a pretty decent institution for a DO school to be affiliated with in general. I remember hearing a few years back that some of the new MD programs in CA were looking to encroach on spots there ... but that's the last controversy I've heard regarding Arrowhead (which I think was dismissed) until now.
I don't know if this situation will affect residency applicants, but word on the street (aka the psych forum) is that they had to shut down their psych residency recently because of budget problems. I would try to find out more about the stability of the other residency programs there if I were currently applying. Hopefully there isn't anything going on with the other programs.
I am currently rotating at Arrowhead and heard employees talking about the FBI on 11/5, but no one seemed to know the reason for the search. Everything was functioning normally that day and continues to do so. I can say that there have been serious budget cuts recently and some primary care outpatient clinics, which are already over-impacted, are gaining even more patients because of it.