The state of Arizona, US is making significant inroads into e-Health, more specifically into health informatics. The state will develop a computerized medical record-keeping system for those patients, who are enrolled in the state’s publicly funded healthcare system- Arizona Health Care Cost Containment System- and for this a federal grant of $12 million has already been allocated. The funding will be done by US Department of Health and Human Services and the pilot testing of the system will commence from January 2008. This innovative step would not only reduce the number of medical errors, but would also improve patient care and make the cost of medical record keeping significantly cheaper. The availability of patient medical records on a computerized database will enable doctors to be more informed and educated about their patients’ medical history and ailments, thereby improving the healthcare system. However, confidentiality of the patients will not be compromised for medical efficiency. Records would be password protected and some could be backed up with paper files or electronically.