you are wise to be suspicious of government overreach in obtaining and using any personal information, any government of any level be it the feds or the state.
But in answer to your question yes apparently governmental entities can obtain patient health information through exclusions in HIPPA and also through the abomination known as the Patriot Act. The Patriot Act was signed, sealed delivered and affirmed by your favorite Democrats as well as Republicans so everyone had their hand in creating this monstrosity.
But they don’t even need to get court orders to use personal information in a threatening way. We can all remember the Obama goons at the IRS harassing politically conservative organizations through their tool of taxation. Did any IRS heads roll for that fiasco? President Obama had the power to do that, but I doubt that he did it.