In this paper, Motion Estimation (ME) and Motion Compensation (MC) techniques are used for video compression which eliminates the temporal redundancy of video sequence. For motion estimation, Block Matching (BM) algorithm has been used among the various motion estimation algorithms because of its simplicity and efficiency. In this paper, the performance of block matching algorithm such as Four Step Search (4SS) has been improved using Block Transform Scaling (BTS). In BTS all the varying nature frames of video transform into uniform frames using adaptive filter, which fills the pixel information where pixel value is missing within the frame. The proposed work mainly focuses on the compression of videos which have medical information in it. At the end of this paper the result analysis has been done using the parameters such as Peak Signal-to-Noise Ratio (PSNR), Mean Square Error (MSE), Computation Time (CT) and Compression Ratio (CR). © 2015 IEEE.