Because of the crucial importance that is placed on the quality of life in the Western world, health care is an indispensable industry that exists within the society today. In this paper, we examine the use of electronic health records in the healthcare industry and their integral role in delivering effective hospital supply chain operations. In specific, we look at HealthConnect®, a hospital information system used to realize effective hospital supply chain operations by Kaiser Permanente, a premier healthcare provider in California and in other US states. Based on the success of their efforts for adopting electronic health record based system, we present lessons from Kaiser Permanente's experience with hospital information system for other organizations.