Background: E-health is relatively a recent term and can be shuffled with health informatics. It engulfs all forms of digital and electronic processes found in healthcare provided via information and communication technology (ICT) channels. This study is an attempt to find out the level of utilization and effectiveness of e-health in Saudi Arabia due to the vast number of citizens, residents and pilgrims dependent on the present healthcare system. Aim: 1. To assess the utilization status of electronic health (e-health) in Makkah city hospitals. 2. To measure the usefulness of e-health in delivering good healthcare in Saudi Arabia. 3. To find out the challenges cum barriers in implementing e-health services in Saudi Arabia. Methods: A randomized study was carried out in three important hospitals in the Makkah Region. The entire number of samples collected for this study was 51. They belong to the administrative and medical staff in the hospitals and comprise of those staff who handle the daily operations of delivering healthcare services to the patients. Results: The hospitals - King Abdullah Medical City (KAMC), King Faisal Hospital (KFH) and Al Noor Specialist Hospital are using e-health but in different capacities. The main challenges are the costs and expertise of such innovative systems in information technology apart from the lack of computer and technical expertise of the hospital staff. Conclusion: E-health is widely used nowadays and is playing a dynamic and modern role in the delivery of healthcare in Saudi Arabia. This study brings out the e-health utilization and application in the health sector. It has exhibited that most of the clinical departments are utilizing e-health at an optimum level.