Health information technology is a wide idea that covers a variety of innovations used to store, share, and break down health data. Healthcare IT can be used by both the healthcare providers and the patients. While healthcare providers us health IT to improve patient care, patients use it to communicate better with the doctor through learning and sharing information about the patient’s health. Therefore, a patient participates in improving the quality of his/her life and be part of the teams that keeps him/her healthy. Health IT includes electronic health records, personal health records, and E-prescribing. Recently, the federal government has taken an initiative to improve the healthcare systems by employing the Healthcare Information System. The federal initiative aims at enhancing the clinical quality and the patient experience, and make healthcare cheaper.The drive by the federal government to implement has impacted the healthcare system greatly both for the health care providers and the consumers. There has been movement towards outcome-based payments with the introduction digital health care system. It brings changes in how the patients buy, payers pay, and reimbursement of the doctors’ for the care. Outcome-based outcome emphasises on the importance of care coordination which results in the expanded mechanical abilities to share information, form care teams, and perform prescient demonstrating to make sense of the patients at higher hazard. This results in patients receiving better services and the doctors spending less money on unnecessary services. Healthcare providers will also conveniently check on their patient. Doctors can see their patients anytime even on weekends and at nights instead of sending the ER or readmit them in hospitals.The implementation of health information system in the US is moving towards a healthcare system that is attributed by more effectiveness, more accessibility, and better outcomes. This initiative when combined with other healthcare initiatives such as the Affordable Care, and Health Data Initiative, and new innovations in the healthcare IT, will help drive this initiative. There is a thrilling and better time in healthcare system for patients, healthcare giver, and other stakeholders once this initiative has been fully implemented.