The recent advances of Augmented Reality (AR) in healthcare have shown that technology is a significant part of the current healthcare system. In recent days, augmented reality has proposed numerous intelligent applications in the healthcare domain including, wearable access, telemedicine, remote surgery, diagnosis of medical reports, emergency medicine, etc. These developed augmented healthcare applications aim to improve patient care, increase efficiency, and decrease costs. Therefore, to identify the advances of AR-based healthcare applications, this article puts on an effort to perform an analysis of 45 peerreviewed journal and conference articles from scholarly databases between 2011 and 2020. It also addresses concurrent concerns and their relevant future challenges including, user satisfaction, convenient prototypes, service availability, maintenance cost, etc. Despite the development of several AR healthcare applications, there are some untapped potentials regarding secure data transmission, which is an important factor for advancing this cuttingedge technology. Therefore, this paper also analyzes distinct AR security and privacy including, security requirements (i.e., scalability, confidentiality, integrity, resiliency, etc.) and attack terminologies (i.e. sniffing, fabrication, modification, interception, etc.). Based on the security issues, in this paper, we propose an artificial intelligence-based dynamic solution to build an intelligent security model to minimize data security risks. This intelligent model can identify seen and unseen threats in the threat detection layer and thus can protect data during data transmission. In addition, it prevents external attacks in the threat elimination layer using threat reduction mechanisms.