Differential Privacy cannot be directly applied since the underlying assumptions are too strong. An important consideration is that the error/noise added is independent of the answer. Which means that the system becomes unusable for almost all queries other than general trends.
By restricting the query structure, we no longer need large amount of noise. Privacy of hospitals and providers is also very important and cannot be encoded in the Differential Privacy framework. Again this is still a hotly debated issue. But even the most vocal supporters of differential privacy agree that it might not be directly applicable for healthcare domain.
Following are some of the paper that discuss this:
http://www.openu.ac.il/personal_sites/tamirtassa/download/co...
http://www.jetlaw.org/wp-content/uploads/2014/06/Bambauer_Fi...