What the article doesn't say is if any laws were broken or if any data was compromised. When dealing with real time statistical analysis of massive dataset (like regional or national health records), the use of cloud services offers a huge advantage at generating real time analytics and results.
I think a lot of people hear "Google" and think "oh no, its going to show up on the search engine" but there's a lot of other services that they (and other big data companies like Amazon) provide that are not in any way connected to the public search engine.
For example, Google does maintain a HIPAA compliant service (assuming the proper BAAs are in place) for a number of the paid Google Apps. https://support.google.com/a/answer/3407054?hl=en Granted, this is UK and not USA, but its not especially far fetched to hope that sufficient safeguards were in place here as well. I'm not saying this data was or was not stored correctly and safely, but the automatic assumption that data stored on Google (or other cloud services) is immediately compromised is an incorrect one, and has been for quite a while.