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                                                                   EXHIBIT 10.29



                               LETTER OF AGREEMENT
                HEALTHSTREAM INC. AND HEALTHEON/WEBMD CORPORATION

         The purpose of this letter agreement (this "Agreement") is to set forth
certain agreements regarding a strategic alliance between HealthStream, Inc.
("HealthStream") and Healtheon/WebMD Corporation ("Healtheon/WebMD").

1.       Healtheon/WebMD grants HealthStream the right to be the exclusive
         provider of education, continuing education and training services for
         all healthcare organizations, healthcare professionals and healthcare
         workers on webmd.com and all other web sites owned or operated by
         Healtheon/WebMD for a term of five (5) years. The parties acknowledge
         that Healtheon/WebMD's "Just in Time CME" which delivers daily CME
         credits based on that day's medical news, may continue to be presented,
         provided that participants in "Just in Time CME" are registered in
         HealthStream's system and there is a promotional HealthStream logo and
         hyperlink to related HealthStream online courseware.

2.       HealthStream pays Healtheon/WebMD $6.0 million per year for five (5)
         years paid on a quarterly basis as guaranteed minimum royalties (and in
         the first year, mutually agreed upon branding and promotion services),
         with the first quarterly payment due and payable to Healtheon/WebMD
         ninety (90) days after the execution of this Agreement. In the first
         year, $2 million of these amounts shall be applied toward mutually
         agreed upon branding, promotion and other services surrounding the
         launch of the strategic alliance and the remaining $4 million shall be
         applied toward guaranteed minimum royalties. In partial consideration
         of those payments, HealthStream receives 100% of the revenues derived
         from the sale of HealthStream's products and services through this
         Agreement until it recovers 100% of its payments to Healtheon/WebMD
         hereunder, and thereafter HealthStream receives 75% and Healtheon/WebMD
         receives 25% of such revenues.

3.       If the revenues recognized by HealthStream through this Agreement prior
         to the end of the initial five (5) year term are less than $30 million
         HealthStream, at its option, may extend the initial term hereof for one
         (1) additional year upon payment of $1.00 to Healtheon/WebMD.

4.       Healtheon/WebMD will purchase a total of $10 million worth of
         HealthStream's common stock contemporaneous with the closing of its
         initial public offering, subject to a lockup of one year on one-half of
         those shares and a lockup of two years on the remaining half of those
         shares.

5.       Healtheon/WebMD shall prominently display HealthStream's trademark and
         logo whenever and wherever continuing education or training is promoted
         by Healtheon/WebMD.

6.       Healtheon/WebMD will make reasonable efforts to arrange sales or
         business development meetings between HealthStream and Healtheon/WebMD
         customers and partners, including, but not limited to, HealthSouth and
         CVS Pharmacy.


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7.       HealthStream, at its option, may terminate this Agreement in its
         entirety if it has not closed an initial public offering of its common
         stock or a private offering of equity securities raising at least $40
         million in the aggregate within six (6) months of the execution of this
         Agreement.


Agreed and accepted this 29th day of February 2000.


HEALTHSTREAM, INC.


/s/ Robert A. Frist, Jr                    2/29/00
---------------------------               -----------------
Robert A. Frist, Jr.                      Date
Chief Executive Officer


HEALTHEON/WEBMD


/s/ W. Michael Heekin                      2/29/00
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W. Michael Heekin                         Date
Executive Vice President,
Strategic Relations




Letter of Agreement                      2
HealthStream and Healtheon/WebMD