In this papr, a new lossless compression method is presented based on the Binary Adaptive Arithmetic Coder(BAAC). A simple unbalanced binary tree is created by recursively dividing the BAAC unit interval into two probability sub-inervals. On the tree the More Probable Predicted Value(MPPV) and Less Probable Predicated Value(LPPV) estimated by local statistics of the image pixels are arranged in decreasing order. The BAAC or Huffman coder is thus applied to the branches of the tree. The proposed method allows the coder be directly applied to the full bit-plane medical image without a decomposition of the full bit-planes into a series of binary bit-planes. The use of the full bit model template improves the compresion ratio. In addition, a fast computation for adjusting the interval is possible since a simple arithmetic operation based on probability interval estimation state machine is used for interval sub-division within the BAAC unit interval.