The Internet of Things (IoT) is transforming technology by connecting wireless devices, RFID tags, and sensors into a seamless network. Its potential is most evident in healthcare, where it allows for real-time monitoring of patients, tracking of equipment, and extensive collection of health data. This technology has the potential to revolutionize patient care and operational efficiency. However, it is crucial to ensure that sensitive healthcare data is safeguarded. The purpose of this paper is to investigate the integration of blockchain technology into the IoT landscape. In particular, we focus on the use of Ethereum-based blockchain to enhance data security in IoT applications, which is critical in the healthcare industry. This paper proposes a comprehensive approach to utilizing the potential of IoT in healthcare while addressing the unique needs of healthcare data. It prioritizes data security through blockchain, smart contracts, decentralized storage, and encryption. The paper advocates for storing healthcare data in IPFS, which is a decentralized storage solution. Encryption adds an extra layer of security by ensuring that data remains unreadable without the correct keys. This research aims to contribute to the broader discourse on leveraging IoT for transformative healthcare innovation.