They worry about the technology making wrong diagnoses,

You know who I've seen make "wrong diagnoses" over and over again? Human fricken doctors. And not to me (a healthy, upper middle class white male professional) but to my wife (a disabled woman with a debilitating genetic disease from a shitty part of Texas). We had to fight for years and spend tons of money to get "official" diagnoses that we were able to make at home based on observation, Googling and knowledge of her family history. I've watched male neurologists talk to ME instead of her while staring at her boobs. I've watched ER doctors have her history and risks explained to them in excruciating detail, only to send her home (when it turns out she needs emergency surgery).

revealing sensitive patient data

Oh, 100%, this is gonna happen.

becoming an excuse for insurance and hospital administrators to cut staff in the name of innovation and efficiency.

Oh, 100% this is ALSO gonna happen. My wife recently had to visit the ER twice, receive scary spinal surgery and stay over for 2 weeks. The NUMBER ONE THING I noticed was that in this state of the art hospital, in a small, wealthy, highly gentrified town, was DANGEROUSLY understaffed. The nurses and orderlies were stretched so thin, they couldn't even stop to breath (and they were OFTEN cranky and RUSHING to do delicate tasks where they could easily make mistakes). This reckless profiteering is already a problem (that probably needs some more aggressive regulation to deal with it, nothing else will work). If AI exposes it more and pushes it to a breaking point, maybe that could ultimately be a good thing.