Background: Research shows that the health care cost per capita have grown 2.4 percent faster than the gross domestic product (GDP) since 1970. The aim of this paper is to present a useful model of wireless system that can combine both hardware and software environments and it can also integrate with other technologies or infrastructure at a low cost, which can be used for the patient monitoring system. Methods: The biomedical sensor which is attached to the patient, will read analog data. The recorded data will be converted digitally by using Analog to Digital Converter (ADC) and a FPGA transmitter will be used to send this data to Phase Shift Keying (PSK) transmitter. The modulated data will be received by PSK receiver and another FPGA receiver will be used to get the data back on the system. For behavioural modelling Verilog hardware descriptive language is used to provide a high level abstraction and language constructions. And the Simulink software is used to provide a high-level mathematical modelling condition for digital communication system which can be used for the verification and algorithm development.The important modules implemented for the transmitter and receiver FPGA are bus interfacing, compression and the data framing. Findings: A short range wireless health monitoring wireless system is modelled by using a mixed software and hardware simulation environment.At all the stages of the hardware and software designs, different types of languages like Verilog HDL codes and MATLAB used to verify the operation of the modules. The behavioural HDL designed of the FPGA transmitter and receiver will be interfaced with the RF Simulink models of PSK transmitter and receiver by using System Generator (Sysgen) tool that acts as the converter simulator. A realistic design model of health monitoring system is implemented which can be used for future hardware design. Compression and framing are the two main operations used in the transmitter side. Data compression is implemented by Run-Length Encoding method and for data framing high data link control protocol has been used. The unique features of this models simulation are low cost, less complexity, low power dissipation and efficient data transmission. Finally the FPGA based healthcare system allows us to change the design configurations or up gradation of the system based on the requirements. Conclusion: In this paper distributed simulation approach is used for designing the health monitoring system which allows checking the specification of design at all the stages. Simulation by HDL and Simulink mixed models in not the objective of this work, but to prove that realistic design is possible for future health care system design.