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With the introduction of ChatGPT, Large Language Models (LLMs) have received enormous attention in healthcare. Despite potential benefits, researchers have underscored various ethical implications. While individual instances have garnered attention, a systematic and comprehensive overview of practical applications currently researched and ethical issues connected to them is lacking. Against this background, this work maps the ethical landscape surrounding the current deployment of LLMs in medicine and healthcare through a systematic review. Electronic databases and preprint servers were queried using a comprehensive search strategy which generated 796 records. Studies were screened and extracted following a modified rapid review approach. Methodological quality was assessed using a hybrid approach. For 53 records, a meta-aggregative synthesis was performed. Four general fields of applications emerged showcasing a dynamic exploration phase. Advantages of using LLMs are attributed to their capacity in data analysis, information provisioning, support in decision-making or mitigating information loss and enhancing information accessibility. However, our study also identifies recurrent ethical concerns connected to fairness, bias, non-maleficence, transparency, and privacy. A distinctive concern is the tendency to produce harmful or convincing but inaccurate content. Calls for ethical guidance and human oversight are recurrent. We suggest that the ethical guidance debate should be reframed to focus on defining what constitutes acceptable human oversight across the spectrum of applications. This involves considering the diversity of settings, varying potentials for harm, and different acceptable thresholds for performance and certainty in healthcare. Additionally, critical inquiry is needed to evaluate the necessity and justification of LLMs' current experimental use.