Now that appengine supports sas70 
http://googleappengine.blogspot.com/2011/08/google-app-engine-receives-sas70-and.html
 
and 
http://code.google.com/appengine/updated_terms.html 
states clearly "Customer acknowledges that the Service is not HIPAA 
compliant and Customer is solely responsible for any applicable compliance 
with HIPAA."

in a amazon web service white paper they describes a path of use that 
encrypts phi at rest to help achieve HIPAA compliance. Is or will there 
ever be such a document for app engine?

has anyone made a hipaa compliant application of app engine?

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