This doesn’t say it applies to people who have not been clients.
It is based on sound current practice that protected health information should not be used or disclosed when it is not necessary to satisfy a particular purpose or carry out a function.The original point was that a site claimed they had checked with several hospitals all of whom said "not born here." The site named no names, gave no specifics of how the information was obtained, just a bald claim. From what I know of HIPAA, I doubted it and gave reasons why. The most basic: hospitals would first check if the person inquiring had the right to the information. If no, the hospital would not even bother looking for the answer. I think that's as far as you and I can go with this, so goodbye for now.