Four centres of excellence in electronic health research are to be set up.
A partnership of 10 Government and charity funders will establish the centres in London, Manchester, Dundee and Swansea, thanks to an investment of £19 million.
They will open towards the end of the year, with the aim of putting health records at the heart of medical research in the UK.
Each centre will do cutting-edge research which links electronic health records with other forms of research and data.
A range of health conditions will be investigated, such as diabetes, cardiovascular disease and cancer.
Researchers aim to identify more effective treatments, improve drug safety, assess risks to public health and study the causes of diseases and disability.
Professor Sir John Savill, chief executive of the Medical Research Council, said: "This is a watershed moment for data research, which I believe will deliver the benefits of e-health research, improving patient care over the coming years.
"The way in which the partner organisations have come together to invest in e-health underpins its importance."
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