<p>The integration of IoT devices has converted patient monitoring, diagnostics, and treatment. However, current methods often neglect integrity and security of these devices within healthcare settings. This paper introduces an Artificial Intelligence and Blockchain-based system to address these issues and enhance security in Healthcare IoT. Initially, HIoT devices are set up, and data is collected. The collected data is then pre-processed. Next, the data is secured using Dynamic Hierarchical ChaCha20 Key Derivative Function (DHCC20-KDF). The secured data is temporarily stored in a buffer to facilitate secure processing. Following this, anomaly detection is conducted by collecting the anomaly detection dataset. Then pre-processing, feature extraction, and dimensionality reduction are carried out. After that from the reduced dimensionality the anomaly is classified using Gradient Penalty with Curvature Regularized Deep Belief HSig Networks (GPCRDB-Hsig). If anamolies are detected, data transmission is blocked and blockchain records are updated. If no anomalies are found, hash value of data is generated and stored in blockchain. If any updates are available in the Healthcare IoT (HIoT) devices, the security of device during update is maintained using blockchain. For such updates, the process is followed by smart contract verification at each layer to ensure transparency and integrity. If the verification is successful then the update begins. If it is unsuccessful update is blocked and preventing the unauthorized changes. As per the experimental analysis, the proposed model attained 99.58% accuracy.</p>