In order to decrease the communication bandwidth and save the transmitting power in the wireless endoscopy capsule, this paper presents a new near-lossless image compression algorithm suitable for hardware design based on the Bayer format image. This algorithm can provide low average compression rate (2.12 bits/pixel) with high image quality (larger than 53.11 dB) for endoscopic images. Especially, it has low complexity hardware overload and supports real-time compressing. In addition, the algorithm can provide lossless compression for the region of interest (ROI) and high quality compression for other regions. The ROI can be selected arbitrarily by varying ROI parameters.