This review paper presents a comprehensive examination of the current and future landscape of Natural Language Processing (NLP) in healthcare, with a particular focus on the integration and potential of generative AI and GPT-3 technologies. The research delves into the transformative applications of NLP in clinical documentation, patient feedback analysis, and the burgeoning field of AI-driven virtual health assistants. It highlights how these advanced technologies can streamline healthcare data management, enhance patient engagement, and facilitate innovative research methodologies. The paper also critically examines the challenges and limitations inherent in the application of NLP within healthcare. These include ensuring the accuracy and reliability of AI-generated information, addressing privacy and ethical concerns related to patient data, and integrating these technologies into existing healthcare infrastructures. The research underscores the need for rigorous standards and ethical considerations in the development and implementation of NLP tools in healthcare. Looking ahead, the paper discusses the potential future directions for NLP in healthcare, emphasizing the role of generative AI models like GPT-3 in advancing patient care, medical documentation, and healthcare research. This review serves as a foundational analysis for future research in this field, advocating for continuous innovation and ethical implementation of NLP and AI technologies in healthcare.