Health informatics plays a crucial role in optimizing medical records management systems within healthcare administration. This review article explores the impact of health informatics on the efficiency, accuracy, and accessibility of medical records in healthcare settings. By leveraging technology and data analytics, health informatics has revolutionized the way medical records are created, stored, and utilized. The integration of electronic health records (EHRs) and other digital tools has enabled healthcare administrators to streamline administrative processes, improve patient care, and enhance decision-making. Furthermore, this review discusses the challenges and opportunities associated with the implementation of health informatics in medical records management systems. Issues such as data security, interoperability, and system integration are examined, along with strategies to address these concerns effectively. Additionally, the role of health informatics in supporting evidence-based practice, quality improvement initiatives, and regulatory compliance is highlighted.