This study uses an advanced algorithm to integrate blockchain-based IoT data storage and cloud computing in healthcare. We aim to tackle the security and privacy concerns related to patient health data. The suggested architectural paradigm lets patients securely access and control their sensitive health data via IoT wearable and diagnostic devices. Blockchain’s distributed and decentralized ledger governs and disseminates encrypted data across numerous network nodes. Patients can authorize medical staff to examine their data. These technologies in healthcare provide decentralized health data processing and improved reliability, security, privacy, transparency, traceability, and auditability. The blockchain can alter healthcare systems and assist healthcare businesses. This study encrypted IoT devices and cloud storage data with AES. This study summarizes blockchain security and privacy advances. The research also shows how these solutions protect patients’ encrypted data before cloud storage. We discussed the size of the data file or folder and the time it takes for encryption and decoding. The proposed system has low computational and communication costs, satisfies security requirements, and provides very accurate encryption and decryption.