I disagree. This is just a way of sweeping it under the carpet and hiding behind privacy until the heats off.
If they're serious, then these "Doctors" should lose their licenses to practice like a lawyer would be disbarred.
But political correctness being what it is ...
I don't know ... this is serious business that goes well beyond writing work excuses for patients who aren't sick. If a physician can fake a diagnosis with impunity and can hide behind the privacy laws, it opens up medical practice to unlimited insurance fraud.