A nurse working at one facility told another nurse that there was a rumor about someone getting raped at the facility the other nurse worked in. She asked the nurse if she had heard anything about it, in which the response was no but she would try to find out what happened. The other nurse then asked a co worker, at the facility in question, if they new anything. The co worker then reported to the DON that questions were being asked about an apparent incident at the facility where it was rumored that someone got raped. No information was given or confirmed to the first nurse. But due to the questions being asked by the first nurse the DON of the facility accused the first nurse of starting the rumor, which was not accurate, she reported this to the MD and Hospital administrator where the first nurse worked, and the first nurse was accused of violating HIPPA laws and they threatened her license. Is this actually a violation of HIPPA?

Its HIPAA and its not a violation. Health Information Privacy (http://www.hhs.gov/ocr/privacy/) A rumor about a rape is far from details of a medical condition or treatment.