The healthcare industry is evolving with the development of the HL7 standards because they enhance integrated healthcare applications’ usability. Health level 7 or HL7 stimulates data interoperability, thus promoting data sharing between different health professionals. Healthcare Informatics requires HL7 to ensure cost-effectiveness and efficacy. The incorporation of healthcare APIs assist the smooth functioning of applications operating through HL7. There are different types of HL7 standards, among which, V2 is more popularly used. However, systems supporting both versions V2 and V3 may develop. Although HL7 has its many benefits and crucial application, it does come with challenges. With appropriate planning and strategies in place, it is possible to develop relevant solutions for the problems.