Today, to much fanfare and consternation, Google launched their medical web service. The site promises to safely and securely organize patient health information and share the information with medical providers to better offer care and awareness. Google has other competition in this developing area, including Microsoft’s HealthVault. Google is often the target of privacy questions due to their aggregation and organization of so much information, but Google Health probably represents the most important step in this regard.

Traditionally, medical information is protected by strict federal legislation called HIPAA. However, Google is not covered under HIPAA. As users of Google Health, one places trust in the user agreements, not a specific federal law. As is very clear, Silicon Valley moves much faster than Washington, D.C. Google has developed a chart comparing the two systems of protection.

Regardless of the specific provisions, and I’m sure there will be much important discussion about the privacy policies and implications of storing health records with a third party, it was inevitable that this would happen. The medical industry is woefully antiquated and moves glacially. Going to the doctor is a painful process even before the shots. Internet ingenuity and thinking will be essential to drive forward this industry and others. There is a reason Kleiner Perkins now focuses 1/3 of their investments in green start-ups and why Internet thinkers are increasingly focusing on more fundamental problems than college networking or viral videos.