Recent advances in electronic devices and communication infrastructure have revolutionized the traditional healthcare system into a smart healthcare system by using IoMT devices. However, due to the centralized training approach of artificial intelligence (AI), the use of mobile and wearable IoMT devices raises privacy concerns with respect to the information that has been communicated between hospitals and end users. The information conveyed by the IoMT devices is highly confidential and can be exposed to adversaries. In this regard, federated learning (FL), a distributive AI paradigm has opened up new opportunities for privacy-preservation in IoMT without accessing the confidential data of the participants. Further, FL provides privacy to end users as only gradients are shared during training. For these specific properties of FL, in this paper we present privacy related issues in IoMT. Afterwards, we present the role of FL in IoMT networks for privacy preservation and introduce some advanced FL architectures incorporating deep reinforcement learning (DRL), digital twin, and generative adversarial networks (GANs) for detecting privacy threats. Subsequently, we present some practical opportunities of FL in smart healthcare systems. At the end, we conclude this survey by providing open research challenges for FL that can be used in future smart healthcare systems