Has always been standard of practice in ER in NYState. Now used as an excuse for firing a 30+ year nurse
This hospital has been firing people left and right for supposed "hippa" violations, to get rid of older employees who make larger salaries. The staff is becoming paranoid, and the game is to see who's going to get it next!

So your question is...

Yes companies do that. So the older employees get together, hire an attorney to represent them, and sue them . They just need to prove they did not violate HIPAA. If they actually violated, that is another issue