That would make it a whole lot more simple. The regs are so complicated and burdensome. They are going to cost A LOT of money to put into practice - money that many small community hospitals just don't have. We are moving to a point where so many hosptials will close that you won't be able to get care - with or without privacy. These regs were aimed at insurance companies, but the burden in on the hospitals.
Primer on HIPAA