Farzam Asad, Junaid Saif Khan, Maria Tariq et al.
Healthcare institutions have access to valuable patient data that could be of great help in the development of improved diagnostic models, but privacy regulations like HIPAA and GDPR prevent hospitals from directly sharing data with one another. Federated Learning offers a way out to this problem by facilitating collaborative model training without having the raw patient data centralized. However, clinical datasets intrinsically have non-IID (non-independent and identically distributed) features brought about by demographic disparity and diversity in disease prevalence and institutional practices. This paper presents a comprehensive simulation research of Federated Proximal Optimization (FedProx) for Heart Disease prediction based on UCI Heart Disease dataset. We generate realistic non-IID data partitions by simulating four heterogeneous hospital clients from the Cleveland Clinic dataset (303 patients), by inducing statistical heterogeneity by demographic-based stratification. Our experimental results show that FedProx with proximal parameter mu=0.05 achieves 85.00% accuracy, which is better than both centralized learning (83.33%) and isolated local models (78.45% average) without revealing patient privacy. Through generous sheer ablation studies with statistical validation on 50 independent runs we demonstrate that proximal regularization is effective in curbing client drift in heterogeneous environments. This proof-of-concept research offers algorithmic insights and practical deployment guidelines for real-world federated healthcare systems, and thus, our results are directly transferable to hospital IT-administrators, implementing privacy-preserving collaborative learning.