Traditional medical prescriptions based on physical paper-based documents are prone to manipulation, errors, and unauthorized reproduction due to their format. Addressing the limitations of the traditional prescription system, e-prescription systems have been introduced in several countries. However, e-prescription systems lead to several concerns like the risk of privacy loss, the problem of double-spending prescriptions, lack of interoperability, and single point of failure, all of which need to be addressed immediately. We propose an AI-assisted blockchain-enabled smart and secure e-prescription management framework to address these issues. Our proposed system overcomes the problems of the centralized e-prescription systems and enables efficient consent management to access prescriptions by incorporating blockchain-based smart contracts. Our work incorporates the Umbral proxy re-encryption scheme in the proposed system, avoiding the need for repeated encryption and decryption of the prescriptions when transferred between different entities in the network. In our work, we employ two different machine learning models(Random Forest classifier and LightGBM classifier) to assist the doctor in prescribing medicines. One is a drug recommendation model, which is aimed at providing drug recommendations considering the medical history of the patients and the general prescription pattern for the particular ailment of the patient. We have fine-tuned the SciBERT model for adverse drug reaction detection. The extensive experimentation and results show that the proposed e-prescription framework is secure, scalable, and interoperable. Further, the proposed machine learning models produce results higher than 95%.