This study examines the intersection of digital healthcare innovations and environmental sustainability within the framework of Institutional Theory. It systematically reviews literature to identify how healthcare organizations adapt to and integrate digital technologies and sustainable practices under institutional pressures. This research employs a comprehensive systematic review methodology, synthesizing findings from a broad range of studies to offer a nuanced understanding of the challenges and opportunities at this nexus. The core objective is to uncover the dynamics between technological advancements and environmental strategies within healthcare systems, highlighting the roles of institutional pressures and organizational responses. Our analysis delves into several key areas, including the adoption of electronic health records (EHRs), telemedicine, and the Internet of Medical Things (IoMT), all within the context of striving for environmental sustainability. Results indicate a significant trend towards digitalization, driven by both the pursuit of enhanced patient care and the need to meet increasingly stringent environmental standards. However, the transition poses unique challenges, such as ensuring data security, managing the environmental footprint of digital solutions, and aligning with complex regulatory frameworks. This study contributes to the literature by providing evidence-based insights and strategic recommendations for integrating digital health solutions with environmental sustainability efforts. It underscores the importance of institutional alignment and adaptive strategies in achieving these integrations, suggesting that future policy directions and organizational practices should consider these dual objectives to enhance the overall effectiveness and sustainability of healthcare delivery.