There has been noteworthy issues that must be tackled by the healthcare sector along with handling the security concerns that are intensely linked with offering of healthcare services, inculcating novel electronic healthcare systems, and secure data communication with different healthcare and government institutions. These security related concerns project several privacy preserving methodologies pertaining to the privacy and security of EHRs (electronic health records) in the cloud. The EHRs comprises of information related to demographics, medical histories, digital images, medications, lab reports, billing details and other sensitive patient information. All this sensitive patient information is kept highly secured and resides in third party servers with definite access controlling mechanism. The conventional system employs various cryptography algorithm for authorization, encryption, decryption, key generation and validation algorithms. There is proposal of a new cryptography algorithm for combating the limitations of AES, RSA and ABS. For securing the healthcare data residing in the cloud, the research presents effective utilization of new hybrid cryptography algorithm and Blockchain technology with smart contract. Unlike the prevailing three cryptographic algorithms, the proposed algorithm offers enhanced time, accuracy, efficiency and key generation and performance. Overall, there is a drastic transformation in securing the healthcare records using the proposed approach.