The rapid urbanization of cities worldwide presents significant challenges to the healthcare sector, including resource constraints, infrastructure gaps, and increasing patient demands. Artificial Intelligence (AI) and the Internet of Things (IoT) offer transformative solutions to address these challenges, driving the development of smart healthcare systems tailored for urban areas. This paper explores integrating AI and IoT technologies to create efficient, real-time, patient-centered healthcare systems. We examine how AI algorithms can optimize diagnostics, predictive analytics, and personalized treatment plans. IoT-enabled devices facilitate remote patient monitoring, data collection, and seamless communication between healthcare providers and patients. By leveraging these technologies, urban healthcare systems can enhance patient outcomes, reduce costs, and improve accessibility to medical services. The study also addresses potential barriers such as data privacy, cybersecurity, and the need for robust infrastructure to support smart healthcare systems. Our findings suggest that the synergy of AI and IoT can revolutionize healthcare delivery in urban environments, promoting more sustainable, resilient, and responsive health services for growing populations.