Reversible Data Hiding is a tactic of conveying secret message by embedding the same in any of the multimedia content and after extracting the hidden information, original cover can be recovered without any deformation to it. In this paper an unique way of embedding the secret data reversibly by applying pairwise prediction error expansion on Integer-Integer Wavelet transformed (I-IWT) image points is proposed for medical images. Considering the statistics of the medical images the neighboring points are considered to be similar and hence the prediction errors are perceived to be close to zero/minimum. The proposed scheme employs I-IWT which is applied to the sub bands of cover image and secret bits are embedded into all sub bands. Experimental analysis is carried out on various test medical images and compared with other recent reversible data hiding schemes. Superior image quality for considerable payload determines the efficiency of the proposed approach. © Springer Nature Singapore Pte Ltd. 2018.