In these modern world all the information has been Digitized, so it is true that hospitals have been sharing their HIS (Hospital Information System) which contains Secure information’s like patient details, medical information’s. It is possible to hack the information over the particular port when the particular port is always used for information transmission by an experienced hacker. Therefore in order to provide Copyright protection we go for data hiding schemes, of which the effective one is Steganography i.e. the art of hiding information within images. For hiding patient information it is better to use Medical image itself. Digital watermarking is a technique of hiding specific identification data for copyright authentication. Most of the medical images are compressed by joint photographic experts group (JPEG) standard for storage. The watermarking is adapted here for interleaving patient information with medical images during JPEG compression, to reduce storage and transmission overheads. The digital watermarking technique that is used here is based on frequency domain technique where, the alternative pixels that are of same frequency are used for encryption. This technique to store texts and Graphical signals in medical images by sharing last bits of discrete cosine transform (DCT) coefficients from the middle frequency range onwards, in the frequency domain. The text data is encrypted before interleaving with images in the frequency domain to ensure greater security.