As usual, all data is both encrypted and unavailable without device passwords or biometric access such as Face ID or Touch ID.
The Veterans Affairs team comes over a year and a half after Apple first introduced the Health Records feature. However, it has only really been available through the medical networks and hospitals that partner with Apple. This expands access to the 9 million plus veterans registered in the VA's health program. Only some people want iPhones, but this still makes medical information significantly more accessible than it has been in the past.