The increasing use of telehealth is most evident in the home health industry, but hospital-based systems have been leaders in this arena. For example, the Veteran's Health Administration (1999) and Kaiser Permanente Health System (Johnston et al. 2000) have invested considerable financial resources in telehealth programs for more than a decade. Additionally, managed care organizations are exploring a wide array of e-health applications (including telehealth) as disease-management tools (Meyer, Kobb, and Ryan 2002). To be used effectively, however, telehealth services must be carefully planned and executed. Most important, telehealth deployment must be consistent with the organization's long-term strategic objectives