As the country's largest healthcare provider and healthcare payor, the Federal Government is as bound by the privacy provisions of HIPAA as anyone.

Logging, displaying and retaining patient names, medication names, prescribing physician and dispensing pharmacy information was not I imagine deemed to be very productive (as opposed to checking the volume of shampoo and lotion carried) and It was probably understood to be a very visible intrusion which is why whoever thought of it probably backed off quickly.