Do HIPAA laws apply to litigation?

I understand the importance of the HIPAA laws. But - I work in a defense lawfirm as a paralegal - and medical facilities will not give up records - EVEN IF SUBPOENAED - without a HIPAA-compliant authorization. It seems to me that HIPAA laws would not apply when a person brings about a legal action where their own personal injuries are the focal point of that legal action! Is this a misinterpretation of HIPAA laws by the medical facilities - or does HIPAA make medical record doent gathering so stringent that it really makes it almost impossible for defense firms to gather records & do their jobs? I think if someone is suing for personal injury - they really have waived their right to privacy when it comes to those medical records. Does the HIPAA law directly address this situation?