Is this against any kind of confidentiality rule?? HELP!?

Hey guys && girls i need some opinions/advice. Long story kinda lol. I had my baby in a hospital where they didnt accept MEDi-CAL insurance, but the insurance paid the hospital bills anyways. The ob-gyn that delivered Angie doesn't accept it and says that medi-cal wont pay it so they want $400 payments per month (balance is $2900) - which i don't wanna pay so i ignore their calls and changed my number -- LONG STORY SHORT -- they went through my medical records AT THE HOSPiTAL and called my sister, Eric, and someone i NO LONGER TALK TO -- and put out iN THE OPEN - That i owe them money -- CAN THEY DO THiS?? What can i do cuz that pissed me OFF!!!!!! -- WTF HAPPENED TO CONFiDENTiALiTY!!!!!!