The Internet of Things (IoT) in the healthcare market is propelled forward by the implementation of digital systems for monitoring and analysing health problems. IoT and smart devices can contribute to a highly smart environment. Smart medical devices interconnected with smartphone apps can collect medical and other required health data. "Data Fusion (DF)" refers to integrating data and knowledge from multiple sources. However, these techniques are also applied to other domains, including text processing. Using data from multiple distributed sources, the objective of DF in multisensory contexts is to reduce the chance of detection errors and increase their reliability. The objective is to increase scalability, performance efficiency, and identification. A medical device's ability to scale up or down demonstrates its capacity to respond to environmental factors. A more scalable system performs as expected, with no interruptions, and makes the best available use of the resource management it has. To ensure that these tracking devices all work the same way, it is essential to form a specialised group to develop uniformity in areas such as communication channels, aggregation of data, and smart interfaces. The main contribution of this research is pre-processing, DF using the Improved Context-aware Data Fusion (ICDF) algorithm, feature extraction via Improved Principal Component Analysis (IPCA), feature selection through the Enhanced Recursive Feature Elimination (ERFE) algorithm, and a classifier using an ensemble-based Machine Learning (ML) model. The Improved Dynamic Bayesian Network (IDBN) is a good trade-off for tractability, becoming a tool for ICDF operations. The simulation results show that the proposed ICDF model achieves higher performance in terms of 97% accuracy, 96% precision, 97% recall, and 97% F1 score in the healthcare system.