Image compression is the processing of images by using Transform operations and Encoding techniques. Nowadays, there is an essential need of these methods in the medical field. This work is focused on the performance quality assessment of medical images using Image Compression Techniques. Image compression is the process of compression of an image in such a way that it has less space than the original image. It is an organization of compression technique that reduces the size of an image file without affecting its quality to a greater extent. The bio-orthogonal transform is used for decomposing the Lung images. After decomposition, different methods of encoding are performed and finally the proposed compression methods are evaluated for finding optimum algorithm for medical image.