Background: The crucial role of innovation in healthcare management today as a driving force for long-term progress is more important than ever. Effective healthcare management is pivotal in achieving optimal health outcomes and operational excellence. Innovation in healthcare management refers to the implementation of contemporary or significantly improved methods, practices, or technologies that lead to better health outcomes, greater efficiency, and ameliorated patient experiences. Aim: The aim of this systematic review was to identify and analyze innovative practices in healthcare management that contribute to long-term progress. Methodology: An electronic search was conducted and databases included PubMed, Scopus, and the Cochrane Library, so as to examine the relevant material between January 2024 and May 2024. Inclusion and exclusion criteria were implemented. “Healthcare, management, innovation, AI, progress, long-term” was the combination of indexing words that was used. Results: Based on the undertaken search, a total of ten studies met the eligibility criteria as for the specific systematic review. Regarding the analysis of these ten studies, two were cross-sectional studies, two were qualitative studies, one was a qualitative interview study, one was a qualitative research through face-to-face survey, one was a quantitative study, one was a descriptive survey design, one was a study based on longitudinal data, and one was a study employing a multimethod qualitative approach. Conclusion: The role of innovation in healthcare management for long-term progress is pretty valuable. By offering solid leadership, a supportive culture, and a patient-centered approach, managers can promote innovation in healthcare organizations effectively and sustainably. Hence, there could be better patient outcomes and more motivated and engaged employees as a result of the effective implementation of innovation in healthcare management.