Compressing the medical images is one of the challenging areas in healthcare industry which calls for an effective design of the compression algorithms. The conventional compression algorithms used on medical images doesn’t offer enhanced computational capabilities with respect to faster processing speed and is more dependent on hardware resources. The present paper has identified the potential usage of Vedic mathematics in the form of Urdhava Tiryakbhyam sutra, which can be used for designing an efficient multiplier that can be used for enhancing the capabilities of the existing processor to generate enhance compression experience. The design of the proposed system is discussed with respect to 5 significant algorithms and the outcome of the proposed study was testified with heterogeneous samples of medical image to find that proposed system offers approximately 57% of the reduction in size without any significant loss of data.