During the last three decades, healthcare expenditure in the U.S. has substantially increased. If this pace of increase is not controlled, it will lead to disastrous results for the healthcare system. An effective use of health information technology would not only improve the quality of healthcare but help reduce healthcare costs considerably. However, risks of privacy and security of patient electronic health records are great. It is recommended that healthcare organizations use IT management best practices, follow proper risk assessment and management guidelines, and keep up with latest technological advances to ensure the privacy and security of patient data.