OK, setting aside the possibility this is some sort of joke/sarcasm I can't quite get, and the absolute wtf of this "scenario" which doesn't exist and all the ways it cannot exist with nothing to with privacy, and taking it sorta seriously, your argument completely falls down here amongst other places:

>Lets say military intelligence has multiple NATO hospitals compromised, and have assets in these hospitals which are being used for various black operations (including non-medical neurosurgery on literal children). In this scenario, maybe total societal surveillance, including radical transparency, would have been a nice thing to have in regards to bolstering national security?

Why the heck would you think that the first job of a hostile military intelligence wouldn't be TO COMPROMISE THE TOTAL SOCIETAL SURVEILLANCE NETWORK!?!? There is a sort of really fundamental common failure to this kind of conspiracy thinking, wherein simultaneously your opponent is this incredibly powerful and skilled entity, one that in this case can compromise lots of secured aspects of society and insert actual agents into a hospital for illegal child surgery and escape notice. Yet simultaneously they're complete idiots who don't do the obvious, obvious job #1, job #2, and job #3 of an intelligence agency which is seek to compromise your enemy's intelligence agencies! Duh. It always has been. Counter intelligence and trying to get inside the other agency's decision loops has rich history probably for as long as spying has been done.

Why do you think you can secure this incredibly invasive theoretical network, all evidence from our entire history to the contrary, yet not medical service providers? You've literally built something here that your enemy would desperately love to have! You've done their entire job for them, better than they could! Rather then having to try to compromise endless distributed independently secured private and public organizations, now they just have to compromise a single one and they get the keys to the kingdom.

>Instead, we got HIPAA, and other medical privacy laws/standards, which are aiding literal mass atrocity to continue to proliferate.

This is such schizobabble that makes no sense (HIPAA has nothing to with law enforcement or medical ethics boards or a million other checks on the health system, just for starters) that I don't know what else to do beyond urging you to seek some alternatives to wherever you got this from.