Re: Keep it local
1) You have a pre-existing medical condition meaning you absolutely must *not* be given Medicine X.
2) You live in London.
3) You go to Devon for a weekend break.
4) Whilst there you suffer shortness of breath and lose consciousness. Fortunately the paramedics that attend have Medicine X on board, which is ideal for your circumstances.
5) You die of a reaction to the medicine, because nobody could get clearance to view your medical records in time.
Transmission of data in the NHS *is* heavily encrypted. The focus on "overcoming" privacy concerns is not a reference to ignoring privacy, but relates to setting up systems to enable the people that *need* to see your records to get them as fast as possible. The challenge is doing this without sacrificing security of data, but it's being worked on, hence the news article above.
The idea of locking down records even more will leads to more delays in treatment and deaths.