Widespread use of electronic health records (EHRs) and implementation of local and regional electronic clinical messaging exchange networks are viewed as essential in improving quality and cutting costs. But the investment and integration required will pose legal and strategic challenges that most healthcare entities have not faced to date. We are helping our clients navigate the complex legal, business and strategic issues involved in the electronic exchange of health care information. For example, we represent clients in negotiation of licensing agreements with suppliers of EHRs. We are also helping clients respond proactively to policy and funding initiatives, while also monitoring, influencing the development of, and complying with federal regulations concerning EHRs, qualification requirements for EHR incentives, health information exchanges, and the privacy and security of protected health information.