The proliferation of battery-operated end-user electronic devices due to technological advancements, especially in medical image processing applications, demands low power consumption, high-speed operation, and efficient coding. The design of these devices is centered on the Application-Specific Integrated Circuits (ASIC), General Purpose Processors (GPP), and Field Programmable Gate Array (FPGA) frameworks. The need for low-power functional blocks arises from the growing demand for high-performance computational units that are part of high-speed processors operating at high clock frequencies. The operational speed of the processor is determined by the computational unit, which is the workhorse of high-speed processors. A novel approach to integrating Very Large-Scale Integration (VLSI) ASIC design and the concepts of low-power VLSI compatible with medical image compression was embraced in this research. The focus of this study was the design, development, and implementation of a Power Delay Product (PDP) optimized computational unit targeted for medical image compression using ASIC design flow. This stimulates the research community’s quest to develop an ideal architecture, emphasizing on minimizing power consumption and enhancing device performance for medical image processing applications. The study uses area, delay, power, PDP, and Peak Signal-to-Noise Ratio (PSNR) as performance metrics. The research work takes inspiration from this and aims to enhance the efficiency of the computational unit through minor design modifications that significantly impact performance. This research proposes to explore the trade-off of high-performance adder and multiplier designs to design an ASIC-based computational unit using low-power techniques to enhance the efficiency in power and delay. The computational unit utilized for the digital image compression process was synthesized and implemented using gpdk 45 nm standard libraries with the Genus tool of Cadence. A reduced PDP of 46.87% was observed when the image compression was performed on a medical image, along with an improved PSNR of 5.89% for the reconstructed image.