Federated Learning (FL) emerged as a transformative approach to collaborative model training in healthcare, enabling multiple institutions to develop robust Machine Learning models without compromising sensitive patient data. This review examines recent advances, applications, and challenges associated with FL in healthcare, focusing on its potential to enhance data security and privacy through the aggregation of decentralized models. A comprehensive literature review was conducted using databases including PubMed, Google Scholar, and Scopus, identifying 316 relevant publications, from which 23 were selected for detailed analysis. The findings highlight the applications of FL in critical healthcare areas, including oncology, infectious diseases, medical imaging, drug development, and personalized medicine. Although FL offers significant opportunities for precision medicine by managing fragmented and heterogeneous datasets, substantial challenges remain, particularly regarding data standardization, model convergence, and communication efficiency. This review also addresses crucial aspects such as privacy-preserving techniques, ethical compliance, and system scalability, emphasizing the need for interdisciplinary solutions. Ultimately, FL demonstrates significant potential to revolutionize healthcare by improving patient outcomes and accelerating medical research while maintaining strict regulatory compliance. Future research directions are discussed to overcome current barriers and advance the broader adoption of FL in healthcare applications.
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