At several universities I've been at, HPC groups have been utterly unprepared (and disinterested in becoming prepared) to handle PII or any sort of health or confidential data.
As we are talking anecdotes. Universities I’ve been at that researched sensitive data like human genetics and some commercially sensitive data have been excellent at data security, and provided a centralised HPC cluster at a marginal cost than it would have been at AWS..
While hospital records are protected, traditionally genomics data is not considered PII so is not covered by HIPAA. It does seem a bit of a farce though considering it could be uploaded to GEDmatch and have a good chance of finding relations of person the sample was taken from...
Or any interest in reliability or making it usable. Students are there for passion. People who work in university IT are just utterly unemployable elsewhere.