Dear Tracy,
No doubt the hearing impairment can complicate sources of frsutration for a child, but the behavior management piece can proceed nonetheless. In other words, hearing impaired or not, it's necessary to set clear rules, abide by them religiously, and establish an equally clear set of rewards/consequences for compliance and non-compliance, respectively.
The fact that your daughter proceeds to time out in an angry state is nothing to worry about. As a matter of fact, it's to be expected that a child will be angry under such circumstances. The important thing is that she cooperate with the time out, angry or not.
Sensory integration difficulties can pose complications relative to behavior. But it's difficult to talk about SI problems in general, because SI difficulties can occur in many different ways and at many different levels of severity. So, the questions to ask of the OT specialist are: What particular types of SI problems does your daughter display and what can be done to treat them? Dr. KDK