A system and method for problem list categorization and management in an electronic health or medical record includes matching each entry in the list with an interface terminology concept, grouping related concepts together into one or more categories, and grouping entries into one or more nested sets of problems. Groupings are accomplished by analyzing semantic distances between concept elements to determine which entries are duplicates according to the interface terminology and which are different but related to sufficiently similar concepts. Certain elements will be sufficiently related that they are nested or clustered within a single problem list element. Others are different enough to merit different elements but classification within a common category of problems.