State government entities have created a range of innovative electroni
c information systems to support their diverse and evolving roles in t
he health care system, Primary goals of these initiatives include impr
ovement of traditional public health programs, meaningful oversight of
providers, simplification of administrative procedures, and support o
f state purchasing decisions. We establish a taxonomy of state efforts
, describing primary capabilities to (1) provide meaningful data to st
ate decisionmakers; (2) disseminate information to purchasers and cons
umers; (3) coordinate and improve government services; (4) establish m
echanisms for electronic transactions; and (5) support telemedicine se
rvices. Reductions in the costs of technology and use of the Internet
have dramatically increased state capabilities in recent years. Both t
he successes and failures of existing programs offer important lessons
for states that are initiating new electronic communication initiativ
es.