The value of the computerized medical record is derived in part from the availability of medical information in a coded form accessible to manipulation by processes designed for automated decision support, medical research, and computer assistance in the management of health care delivery. To meet these needs medical reports captured and stored as natural language documents must be encoded. Below we discuss an ongoing formative process aimed at developing a natural language understanding system for chest x-ray reports. Comparative data showing the progress of this process is presented.