That is a misunderstanding.
Let me shift the bulletin down: The only reason ham radio is allowed to operate anywhere in the world is because the governments of the world (including ours) do not regard it as a threat to them. Encryption is a threat as far as governments are concerned; and legal limitations (or their lack) in this country don't matter, since ham radio is global. If you add encryption to ham radio, then ham radio becomes a threat to governments, too. Then ham radio will become largely banned or restricted, and its enjoyment elsewhere will drop to the point where it is no longer viable as a hobby.
This proposal, requested by a relatively narrow sector of society (hospitals) out of fear of litigation, if it every becomes allowed, will turn and bite hospitals in the collective butt when they face a shrinking pool of licensed radio operators. Any remaining ham radio operators will use ham radio at work, where the employer assumes the legal risk. Otherwise, why bother, when encryption makes ham radio too much trouble.