In this paper, a multiuser medical image encryption algorithm is proposed. The proposed algorithm utilizes polar decomposition, which enables multiuser features in the proposed algorithm. A computer-generated hologram (CGH) improves the security of the proposed algorithm in the gyrator domain. The phase-only CGH-based multiuser algorithm offers advantages such as storing a large amount of information in a compact space, resistance to counterfeiting, and enhanced security. The proposed method is validated with various statistical metrics, such as information entropy, mean squared error, correlation coefficient, histogram, and mesh plots. Results confirm that the proposed algorithm is secure and robust against potential attacks, such as plaintext attacks, iterative attacks, and contamination attacks. The proposed method has a large keyspace, which makes it very difficult to be breached in real-time with existing computational power.