When a job was offered and then recinded due to management disclosed medical conditon of the employee during a reference check. Is this a violation of privacy act or Hippa

Probably not, but the details are very sketchy. If the prospective employer did a reference check with another employer and that employer revealed a medical condition, it would NOT be a HIPAA violation unless the employer was also the employee's medical provider.

As long as the information given by the other employer was factual, they have no liability. The only question was how they obtained the medical info. If they obtained it legally then there is nothing that can be done.