Dear All,
A front desk officer created a patient and mistakenly saved wrong name. Then, he edited the patient and changed the party name but this change is not reflected in the patient record.
When I analyzed this issue, it was revealed that in 'Party' record under 'Identifier' tab, the 'Person Name' was NOT changed though the party's first and last names were changed. In patient record same 'Person Name' was being displayed.
So, when I removed this 'Person Name', everything behaved as expected.