Nothing against Google, who provides some great services, but if I knew anything about my heath records were going anywhere near Google - I'm out.
First, Google does not have a good track record when it comes to security. Or privacy for that matter.
Another concern is that the aggregation of so much data makes the system a more attractive target for attackers. Many smaller systems avoid attacks simply because there isn't enough value in a targeted attack (sad, but true). Put millions of records together in one place, and kiss you may as well blog your medical records right now.
I am concerned with more than identity theft. If your credit card number is stolen, you can cancel it. If you are an HIV-positive patient, or on anti-depressants, or simply someone who values what little privacy really matters, this should scare the heck out of you.

Power to Patients!
Maybe contract law could help patients enhance the privacy of their health records. http://hack-igations.blogspot.com/2008/02/contracts-for-patient-privacy.html
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