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With increasing concerns over privacy in healthcare, especially for sensitive medical data, this research introduces a federated learning framework that combines local differential privacy and secure aggregation using Secure Multi-Party Computation for medical image classification. Further, we propose DPResNet, a modified ResNet architecture optimized for differential privacy. Leveraging the BloodMNIST benchmark dataset, we simulate a realistic data-sharing environment across different hospitals, addressing the distinct privacy challenges posed by federated healthcare data. Experimental results indicate that our privacy-preserving federated model achieves accuracy levels close to non-private models, surpassing traditional approaches while maintaining strict data confidentiality. By enhancing the privacy, efficiency, and reliability of healthcare data management, our approach offers substantial benefits to patients, healthcare providers, and the broader healthcare ecosystem., Comment: 38th Conference on Neural Information Processing Systems (NeurIPS 2024) - MusIML Workshop