Turns out that in many parts of the world, there's a lack of specialists to read and interpret these images (radiologists, pathologists), even though there are technicians skilled enough to generate them. Fewer still are specialized to handle cases effectively. Thus patients wait long periods of time for diagnoses as slides are transported to places where they can be read, suffering throughout.
Teleradiology and telepathology are burgeoning fields which are necessary across the globe, with the potential to save lives and make money. There are quite a few aggressive players in these spaces, and we're excited to see what they do.
I'm working in an extension of one of these spaces; feel free to reach out if you're curious...
Holding startups to the criterion of helping the poor, unwashed masses is, however, rather unreasonable.
AWS and Rackspace have both hinted that they are considering becoming BAA compliant, but they aren't today. Azure (Enterprise) and pricier services like Firehost are.
It is possible that you could make a legal case for storing encrypted patient data on S3, but this is still a gray area, especially when some states (like Mass.) have enhanced patient privacy laws that trump federal laws. And before anyone replies, note that it's a LEGAL question of possession of data, not a technical one about encryption algorithms. We have very expensive HIPAA attorneys who do understand how encryption works but are still undecided on this.