It does more than just protecting sensitive health information, it also governs how billing works, so if you've ever wondered why some Dr. you never met is sending you bills in the thousands of dollars; HIPAA is where you can find out why!
So that's why suddenly every nurse wants to talk to you, check your blood pressure, and a different nurse wants your blood oxygenation… and that guy that walked by who greeted the doctor seeing you, and talked about how much the 49ers sucked last weekend, and flirted with the nurse? Bill's in the mail.
There are avenues for billing via consult (eg doc to doc conversations), but what you claim is very far from the truth.
But over the years, with the enactment of the Privacy Rule, Security Rule, HITECH Act, Omnibus Rule, etc., HIPAA's implications have been shaped quite a bit.