During the medical data transmissions, the protection of the patient information is vital. Hence this work proposes a spatial domain watermarking algorithm that enhances the data payload (capacity) while maintaining the authentication and data hiding. The code is distributed at every pixel of the digital image and not only in the regions of non-interest pixels. But the image details are still preserved. The performance of the proposed algorithm is evaluated using several performance measures such as the mean square error (MSE), the mean absolute error (MAE), and the peak signal to noise Ratio (PSNR), the universal image quality index (UIQI) and the structural similarity index (SSIM).