Electronic medical records should definitely be protected. Recently, I heard a news story on National Public Radio about rape victims' personal info being sold to companies that would be marketing drugs or other products to them; I found this reprehensible. To prevent this sort of thing and keep the anonymity of patients paramount, a government agency would be a great idea.
No, a government agency should not be created to monitor the proper use of electronic medical records, because there are already far too many government organizations that regulate far too many things. These records are already covered by HIPPA and enforced by HIPPA. We do not need yet another agency.
Medical privacy and the important treatment of medical records are both important issues and need to be addressed. Given that there are so many government organizations already it seems entirely possible that seems that they should be on top of it. If they can't handle the job they should consider contracting the job out to the private sector.
I do not believe government agencies should be created to monitor the proper use of electronic medical records. Laws should be put in place and employees that know of problems or misuse, should feel obligated to report it to proper authorities. We shouldn't have to create an agency and pay to have people sitting at desks all year long to police the medical records.