We designed a physics laboratory exercise around pulse oximetry, a noninvasive medical technique used to assess a patient's blood oxygen saturation. An alternative to a traditional optics and light lab, this exercise teaches the principles of light absorption, spectroscopy, and the properties of light, while simultaneously studying a common medical device. Pulse oximeters are ubiquitous in clinical environments; many people who have undergone surgery or visited a hospital environment have experienced the use of this device, making it a good candidate for an investigative lab. The experiment elicits the creative process of device development from students as they conduct measurements using a blood analog that reconstructs the principles of pulse oximetry.