Fast communication of medical information is a big challenge for today’s researchers. Either bandwidth or information needs to be sacrificed in order to communicate the entire information within a short time with minimal bandwidth. Compression of medical information before transmission helps us to communicate the entire information within short time with minimal cost. This paper concentrates on reducing the transmission bandwidth by compressing the entire medical information using a Hybrid algorithm which uses 2D Bi-orthogonal multi-wavelet transform and SPECK – Deflate encoder. The algorithm is studied with the standard test dataset GRUSELAMBIX. The real time data was analyzed to ensure the perseverance of the diagnostic information. 2D Bi-orthogonal multi-wavelet transform was applied on each frame on the DICOM file and the co-efficients are encoded using SPECK encoder followed by the deflate compression algorithm. To preserve the original diagnostic information, motion estimation and compensation was not applied on the medical videos. The qualitative performance of this algorithm is evaluated using Compression Ratio, PSNR, MSE, UIQIand SSIM. The Mean opinion Score from experts and non-experts was obtained on the real time data to evaluate the quantitative performance. The proposed algorithm revealed a better compression ratio than the traditional compression algorithm.