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No, not scary
No, it isn't scary. You didn't understand the article is all.
Google is not being 'hacked' in the way you see it used in the press a lot these days. No one is breaking into Google's servers or getting at anything they shouldn't get at. This is 'hacking' in the old sense - being clever and creative. The information is PUBLIC already. This is simply searching Google's public search engine for specific searches designed to find information that is public - but probably should not be.
And that's the fault of the sites that, either deliberately, via mistakes, or through oversight are making the information available in the first place. Google just vacuums all that data up when it indexes the site, and this tool finds those needles in the Google haystack.
It has absolutely NOTHING to do with Google's medical records effort, or Gmail, or anything else.
This isn't even new - the tool is new, but the concept is not. For years now search engines, and not just Google, have been used to search for information accidentally leaked and indexed.