@KnowlWay YANBU. I would definitely not be happy at ALL.
The last 2 surgeries I have been registered at, have not allowed anyone to apply for jobs there unless they live 5 miles or more away. And they would certainly not ever have employed a 'school mum' from the local school, who would almost certainly know many people registered at the practice. I am shocked that this 'school mum' is allowed to work there.
I know many people say 'she won't nose and gossip because it's more than her job's worth yada yada' and yes she WILL be in the shit if she breaks the rules.' That doesn't mean she won't break them though!
I have known several people in positions of trust (doing admin at the hospital, and at the GP practice,) and they have gossiped about people they know (and me, and some people I know also know.) And that gossip has reached me.
A neighbour of mine told me that 'Jan the GP receptionist' said that Lucy at No 10 High Street, was pregnant, even though Lucy had made it clear to Steve, her husband that she never wanted children. He didn't either when they married 10 years ago, but now wanted kids, and Lucy was going to abort it!
I was gobsmacked that this woman had told my neighbour this personal information about Lucy.
There are several more cases I could name of 'confidentiality breaking,' and not just in GP practices and hospitals, but hotels too. One person I know who works for a hotel chain told me (some 5 years ago,) that Gemma who married Andrew in 2015, was in her hotel shagging another man.
People are meant to stick to the data protection rules. Many do. Some do not. Any gossip I have been told, I have NEVER repeated. But some people are natural gossips, and love a bit of scandal. So if they see something that they regard as 'juicy gossip,' they will blab...
I know someone who worked in housing some years back (in the noughties,) and she used to have access to peoples housing applications. She could see what benefits they were on, all their previous addresses, their financial situation, any personal sensitive information about domestic abuse, and marriage breakdown etc etc... And she occasionally gossiped about people. I would be MORTIFIED if some random acquaintance who I didn't like much - or even DID like - was able to access my personal, sensitive information.
As a pp said, if some people have had abortions, or IVF, or an STI, or something else personal and sensitive, the last thing they want is some random 'school gate mum' having the chance to access her records.
I would move practices - and bloody soon!
As a few posters have said, it's incredibly naive to assume that this woman won't have a nose at peoples medical records. Of course she bloody will! And it's unlikely that she will keep everything she sees to herself!