Electronically stored health data (ESHD) provides benefits like improved treatment through better access to patient information across care contexts, facilitating pay-for-performance programs and research. However, ESHD also raises privacy issues as data could be used to identify harms, stigmatize patients, or exploit personal relationships. Compromise solutions to balance these ethical considerations include obtaining patient consent, encrypting data, and limiting access through policies like those used for ANZDATA collection, Boston pharmacogenetic research, and Southlink general practice records.