While healthcare is the biggest service industry on the globe it has yet to realize the full potential of e-health, which is in stark contrast to other e-business initiatives such as e-government and e-education, e-finance or e-commerce. This is due to many reasons including the fact that the healthcare industry is faced with many complex challenges in trying to deliver cost-effective, high-value, accessible healthcare and has traditionally been slow to embrace new business techniques and technologies. The goal of this paper is to develop a framework to assess a country’s e-health preparedness with respect to embracing e-health (the application of e-commerce to healthcare) and thus enable a country to identify as well as address areas that require further attention in order for it to undertake a successful e-health initiative.