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In the recent years, blockchain technology has gained significant attention in the healthcare sector. It has the potential to alleviate a wide variety of major difficulties in electronic health record systems. This study presents an elaborate overview of the existing research works on blockchain applications in the healthcare industry. This paper evaluates 144 articles that discuss the importance and limits of using blockchain technologies to improve healthcare operations. The objective is to demonstrate the technology’s potential uses and highlight the difficulties and possible sectors for future blockchain research in the healthcare domain. The paper starts with an extensive background study of blockchain and its features. Then, the paper focuses on providing an extensive literature review of the selected articles to highlight the current research themes in blockchain-based healthcare systems. After that, major application areas along with the solutions provided by blockchain in healthcare systems are pointed out. Finally, a discussion section provides insight into the limitations, challenges and future research directions.