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Federated learning (FL) enables collaborative learning of a deep learning model without sharing the data of participating sites. FL in medical image analysis tasks is relatively new and open for enhancements. In this study, we propose FedDropoutAvg, a new federated learning approach for training a generalizable model. The proposed method takes advantage of randomness, both in client selection and also in federated averaging process. We compare FedDropoutAvg to several algorithms in an FL scenario for real-world multi-site histopathology image classification task. We show that with FedDropoutAvg, the final model can achieve performance better than other FL approaches and closer to a classical deep learning model that requires all data to be shared for centralized training. We test the trained models on a large dataset consisting of 1.2 million image tiles from 21 different centers. To evaluate the generalization ability of the proposed approach, we use held-out test sets from centers whose data was used in the FL and for unseen data from other independent centers whose data was not used in the federated training. We show that the proposed approach is more generalizable than other state-of-the-art federated training approaches. To the best of our knowledge, ours is the first study to use a randomized client and local model parameter selection procedure in a federated setting for a medical image analysis task.

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