In the history of telemedicine, various definitions have been published and numerous terminologies have been coined. The introduction of new technologies played an important role in the changing definitions. After three decades of experience in telemedicine and its variations, the need for a single taxonomy that is detailed enough to define all the terms introduced until today is evident. Taxonomy we propose takes into account purpose, application area, delivery tools, communication infrastructure, and delivery setting dimensions. The purpose is to create a taxonomy that can explain how these dimensions fit together. Our taxonomy helps to categorize and compare current/future telemedicine efforts and plan several emerging telemedicine scenarios using new technology. The paper concludes with an explanation of how the proposed taxonomy can be used by parties involved in telemedicine as a diagnostic tool, and can help them to understand their needs and capabilities for participating in next generation healthcare environments.