Triggered by the challenging prerequisites of wireless capsule endoscopic video technology, this paper presents a novel distributed video coding (DVC) scheme, which employs an original hash-based side-information creation method at the decoder. In contrast to existing DVC schemes, the proposed codec generates high quality side-information at the decoder, even under the strenuous motion conditions encountered in endoscopic video. Performance evaluation using broad endoscopic video material shows that the proposed approach brings notable and consistent compression gains over various state-of-the-art video codecs at the additional benefit of vastly reduced encoding complexity.