Healthcare industries frequently handle sensitive and proprietary data, and due to strict privacy regulations, they are often reluctant to share data directly. In today's context, Federated Learning (FL) stands out as a crucial remedy, facilitating the rapid advancement of distributed machine learning while effectively managing critical concerns regarding data privacy and governance. The fusion of federated learning and quantum computing represents a groundbreaking interdisciplinary approach with immense potential to revolutionize various industries, from healthcare to finance. In this work, we proposed a federated learning framework based on quantum tensor networks, which leverages the principles of many-body quantum physics. Currently, there are no known classical tensor networks implemented in federated settings. Furthermore, we investigated the effectiveness and feasibility of the proposed framework by conducting a differential privacy analysis to ensure the security of sensitive data across healthcare institutions. Experiments on popular medical image datasets show that the federated quantum tensor network model achieved a mean receiver-operator characteristic area under the curve (ROC-AUC) between 0.91-0.98. Experimental results demonstrate that the quantum federated global model, consisting of highly entangled tensor network structures, showed better generalization and robustness and achieved higher testing accuracy, surpassing the performance of locally trained clients under unbalanced data distributions among healthcare institutions.