The growth of e-commerce (electronic commerce) is vast, complex and rapidly expanding. E-commerce is clearly an integral part of business, spreading across the areas of Business to Consumer, Business to Business, e-government and e-health. In fact, we could be forgiven for thinking we are in the e-millennium. E-medical records are an example of one such e-initiative to touch the healthcare sector. However, the true advantages of these e-medical records are not clear. We present the case example of MARS, the automated medical record system at Kaiser Permanente-Ohio. In so doing we show that the true advantage of this system is that it functions as a knowledge management system (KMS) simultaneously enabling and facilitating convergence and compliance of healthcare treatment as well as enhancing and supporting the creation and renewal of knowledge pertaining to healthcare delivery.