Most would agree that older adults want affordable, high-quality healthcare that enables them to live independently longer and in their own homes. To this end, ambient assisted living environments have been developed that are able to non-intrusively monitor the health of people at-home and to provide them with improved care. The authors have designed an environment, the Smart Condo, to support seniors and rehabilitating patients. They have embedded a wireless sensor network into a model living space, which incorporates universal design principles. Information from the sensor network is archived in a server, which supports a range of views via APIs. One such view is a virtual world, which is realistic and intuitive, while remaining non-intrusive. This chapter examines computing technologies for smart healthcare-related environments and the needs of elderly patients. It discusses the Smart Condo architecture, reviews key research challenges, and presents the lessons learned through the project.