No, that's not the actual reason! The reason the rule exists is because, when HIPAA was passed, electronic patient health records were a new thing, and they were desired both for cost savings (electronic records as a way to drive administration costs down were a huge thing in the 1990s) and so the USG could combat Medicare fraud. The confidentiality rule was designed to ease the acceptance of electronic records; that's all. That's why the rule refers to e-PHI.