The aim of telemedicine system is to diagnose patients remotely; this includes healthcare provision to patients in far flung areas. The process of remote diagnosis is mainly dependent on bandwidths which are absolutely essential in terms of communications via the networks. Such communications have to be carefully monitored, because randomly sending data across the network and loading of packets as direct stream of cameras would result in chocking the bandwidth. Hence it is extremely important to make sure that the data is compressed so that there is minimum usage of bandwidth. But this has to be done in a way that maintains the quality at its best. This retention of good quality along with minimizing the usage of data is done by means of compression the streams obtained through cameras and then decompressing the data at the other end. This purpose was previously achieved by H.264 codec. Our major target was up gradation of the existing codec by introducing the latest; H.265. The Libde265 (Decoder) and the x265 (encoder) libraries have been used for the purpose of developing the H.265 codec. The H265 is an advanced codec, having better quality and ability to achieve far better compression than its predecessor. It has been shown through the algorithm and coding of H.265 that is has better compressing ability and the quality is maintained during the transmission of videos. This is highly desirable for the field of telemedicine as it can make improvements in providing healthcare services by easing the transmission of data in the form of videos from the patient end to the doctor’s end.