"While we have recently seen progress and momentum, many valid concerns have been raised regarding eHealth Ontario," Caplan said in his statement on Sunday.

Caplan said he directed the board of eHealth Ontario to launch a third-party review of the agency overseen by a government auditor and had called on the Auditor General to report on his review "as quickly as possible."

Only a small percentage of Canadian physicians are using electronic medical records.

A 2007 Commonwealth Fund study shows that 23 per cent of Canadian doctors use some form of e-health systems compared to 98 per cent in the Netherlands, 92 per cent in New Zealand, 89 per cent in the U.K and 79 per cent in Australia.