The immense progress in physiological signal acquisition and processing in health monitoring allowed a better understanding of patient disease detection and diagnosis. With the increase in data volume and power consumption, effective data compression, signal acquisition, transmission, and processing techniques are essential, especially in telemonitoring healthcare applications. An emerging research area focuses on integrating Compressed Sensing (CS) with physiological signals to deal with a massive amount of physiological data, transmission bandwidth, and power-saving purposes. A review of compressed sensing for physiological signals is presented in this paper, including electroencephalography (EEG), electrocardiography (EEG), electromyography (EMG), and electrodermal activity (EDA), focusing on the pros and cons of CS in treating such signals and the suitability of CS for hardware implementation. Furthermore, we emphasize performance matrices such as Compression Ratio (CR), Signal to-Noise-Ratio (SNR), Percentage Root-mean-square Difference (PRD), and Processing time to evaluate the performance of CS. We also investigate the current practices, challenges, and opportunities of using CS in healthcare applications.