While electronic health records (EHR) implementation has the potential to improve quality and financial performance, the rate of EHR adoption is relatively low in nursing homes. This study explores whether EHR implementation is associated with better financial performance, among resource-constrained nursing homes (85% or higher Medicaid census). Survey data on EHR implementation among a national sample of 242 high-Medicaid nursing homes in 2017 was merged with secondary data (LTCFocus, Area Resource File, and Medicare Cost Reports). The dependent variable consisted of the total profit margin (net income/revenues). The independent variable consisted of five categories of EHR functionalities (administrative functions, documentation, order entry, results viewing, and clinical tools) derived from 23 items. Control variables consisted of organizational and market factors. Data were analyzed using multivariable regression with state fixed effects. Results shows a positive relationship between the scope of EHR implementation and total margin (β=3.92, p<0.05). However, only the documentation (β=0.35, p<0.05) and order entry (β=1.26, p<0.05) functionalities were found to have a positive association with financial performance. Documentation provides resident information, such as demographics, problem list, and medication administration and treatment records. Order entry provides resident information on medication orders and other medical orders. These EHR functionalities may be particularly important for coordination of care and in reducing duplication. High Medicaid nursing homes face unique resource challenges, which may affect the degree of EHR implementation. However, despite the initial costs of EHR implementation, it has the potential to reduce costs and ultimately improve financial performance among these resource-constrained nursing homes.