Abstract Evolution of digital Health-care Information System established Medical Image Security as the new contemporary research area. Most of the researchers used either image watermarking or image encryption to address medical image security. However, very few proposals focused on both issues. This paper has implemented a Fast Medial Image Security algorithm for color images that uses both watermarking and encryption of each color channel. The proposed method starts with embedding of a smoothened key image (K) and patient information over the original image (I) to generate a watermarked image (W). Then, each color channel of the watermarked image (W) is encrypted separately to produce an encrypted image (E) using the same smoothened key image (K). This image can be transmitted over the public network and the original image (I) can be achieved using decryption algorithm followed by de-watermarking using the same key image (K) at the receiver. Qualitative and quantitative results of the proposed method show good performance when compared with the existing method with high Mean, PSNR and Entropy.