Mainly because our laws are voted on by our own citizens and because the rest of the world doesn't accept our laws and doesn't have a say in creating them. Your statement seems nonsensical.
If there is an action that breaks the law of two countries there can be joint law enforcement activities. The US cannot punish actions that are legal in one country but illegal in the United States by acting in that foreign country.
https://www.justice.gov/criminal-ceos/extraterritorial-sexua...
Also, the US government will arrest you on US soil or while transiting an airport in the US for certain crimes that take place outside the US.
My post you replied to said "sex trafficking"; I meant sex tourism. Mea culpa.
However, in this case, HIPAA wouldn't apply to a purely Indian health organization, or the records of a foreign national in a foreign organization.
Note that in your situation (sex tourism) all prosecution/wrong doing is based on being a US citizen doing stuff and then returning to US soil. It does not apply to any sort of foreign national - you cannot be prosecuted for sex tourism under the US statute while on US soil if you are not a US national and the crime did not occur on US soil.