Introduction This paper explores how health care service providers can leverage health information to attain quality care, improved care effects, decrease operational costs and accomplish better service return in psychiatric rehabilitation center. Government and business policy amendments have induced a literal healthcare information outburst (Gantry Group, 2007). Particularly, this paper focuses on the electronic medical record modality of communication within the health care system. Information management can be a healthcare provider’s nightmare as well as opportunity. Healthcare practitioners are obliged to manage the increasing information load to satisfy governmental fulfillment and manage increasing operational losses that arises due to increased records and reporting obligations (Gunter & Terry, 2005). Definition The EMR refers to an application setting dealing with clinical information repository, clinical record applications, pharmacy, computerized provider order entry, order entry, limited medical terms, and clinical judgment support. Such background sustains the patient’s EMR throughout the inpatient as well as the outpatient context, and is employed by healthcare professionals to record, evaluate and organize health care practice in a Care Delivery Organization (CDO). The information in the EMR is the official proof of the patient’s experience in the CDO and is a legal property of the CDO (Gunter & Terry, 2005). The Electronic Medical Records (EMR) is a lawful document proof developed in hospitals and ambulatory settings that serves as the source of information for Electronic Health Record (EHR). The EHR signifies the prospect to easily disseminate health information within the stakeholders and to afford patients information through the various forms of care undertaken by such persons. In this context the stakeholders refers to patients, healthcare practitioners, employers, and insurers involving the government (Gunter & Terry, 2005). Application Few health care institutions use EMR interventions that can successfully lower medical mistakes or boost the quality and success of patient care. The Clinical Transformation Staging Model was designed by HIMSS Analytics to evaluate the level of the clinical EMR application in healthcare delivery institutions. This model depicts that hospitals in the United States have a big task in the future to accomplish the HER vision conceived in Washington, D.C. and in the 200+ neo-CHIN Regional Health Information Organization (RHIO) strategies in many states of development throughout United States (Garets & Davis, 2006). Transferring patients’ record custody from paperwork and tangible filing systems to computers provides improved efficiency for patients, their providers and the health disbursement system. Benefits versus limitation of EMR Improved availability and portability of EMR may increase the ease with which they can be obtained and used by unlawful people relative to their paper health records counterparts. This conviction is reflected by the rising security demands for EMR incorporated in the Health Information and Accessibility Act and by latest rise in allegation in confidential records incidents by EMR consumers. Security concerns add to the opposition expressed for their extensive adoption. Handwritten health records can be linked to dismal legibility, which can encourage medical mistakes (Institute of Medicine, 1999). Printed forms, requirements for pen