Healthcare Equity and the Investment Case for Masimo SET®: Bridging Gaps with Clinical Innovation

Healthcare equity remains one of the most pressing challenges in global medicine. Disparities in access, outcomes, and technology adoption persist, particularly in underserved communities. For investors, the intersection of medical innovation and equity offers a compelling opportunity-if the technology can demonstrate both clinical viability and systemic impact. Masimo's SET® pulse oximetry, a staple in modern patient monitoring, has emerged as a case study in how advanced medical devices can address these dual imperatives.

Clinical Viability: Accuracy Across Diverse Populations

A critical barrier to equitable healthcare has been the historical inaccuracy of pulse oximeters in patients with darker skin pigmentation. This issue, highlighted during the 2020 pandemic, sparked urgent calls for solutions that work universally. According to a 2025 feasibility study, Masimo SET® demonstrated consistent performance across diverse skin pigmentation levels, directly addressing concerns about racial disparities in oxygen saturation readings. A 2023 laboratory study further reinforced this, showing no significant impact of race on SET® accuracy under low perfusion conditions-a common clinical challenge.

These findings are not theoretical. A retrospective analysis of Black and White volunteer subjects confirmed comparable accuracy rates, underscoring SET®'s reliability in real-world settings. For investors, this clinical robustness is a key differentiator. Technologies that fail to account for demographic diversity risk exacerbating inequities, but Masimo's data suggests its device mitigates such risks.

Real-World Impact: Cost Savings and Systemic Benefits

Beyond accuracy, the financial and operational benefits of Masimo SET® are equally compelling. At Dartmouth-Hitchcock Medical Center, the implementation of continuous monitoring using SET® led to a 50% reduction in unplanned transfers and a 60% drop in rescue events over 3.5 years. Each avoided rescue event saved approximately $5,500, while each avoided transfer saved over $10,700. Over time, these savings translated to zero preventable deaths or brain damage due to opioid-induced respiratory depression-a testament to both clinical and economic value.

A 2022 study in a Saudi Arabian hospital mirrored these results, reporting reduced all-cause mortality and improved resuscitation outcomes after adopting Masimo's system. The financial model is clear: uncomplicated hospital stays generated an average operating gain of $2,016 per patient, while complicated cases incurred significant losses. By reducing the frequency of complex cases, SET® not only improves patient outcomes but also enhances hospital profitability.

Strategic Collaborations: Expanding Access Through Partnerships

Masimo's commitment to equity extends beyond its technology. The company's renewed Masimo-Philips partnership, announced in September 2025, aims to integrate SET® into Philips' multi-parameter monitors and wearable solutions, ensuring broader access to advanced monitoring. This collaboration, spanning over two decades, emphasizes AI-driven innovations and interoperability-key factors in modernizing healthcare delivery.

Additionally, Masimo has launched initiatives like the Health Equity Advisory Board, chaired by Dr. Eric Jackson, and partnered with the March of Dimes to support NICU families during the hospital-to-home transition. While direct metrics on disparities reduction in underserved communities remain limited, these partnerships signal a strategic focus on accessibility. For instance, the FDA-cleared Stork™ baby monitor and Sleep Halo™ wearable expand Masimo's reach into home healthcare, a critical frontier for equity.

The Investment Case: Balancing Clinical and Financial Returns

For investors, Masimo's trajectory presents a dual opportunity. Clinically, SET® has proven its ability to deliver reliable data across diverse populations, addressing a systemic flaw in traditional pulse oximetry. Financially, the technology's cost-saving potential is substantial, with hospitals reporting millions in annual savings through reduced transfers and rescue events.

Moreover, Masimo's strategic alliances-particularly with Philips-position it to capitalize on the growing demand for AI-integrated, interoperable medical devices. As healthcare systems prioritize value-based care and equity, technologies that reduce disparities while improving efficiency will be in high demand.

Conclusion: A Path Forward

While challenges in healthcare equity remain complex and multifaceted, Masimo SET® exemplifies how targeted innovation can address both clinical and systemic gaps. Its performance in diverse populations, coupled with measurable cost savings and strategic partnerships, makes a strong case for its role in advancing equitable care. For investors, this represents not just a financial opportunity but a chance to support a technology that aligns with the broader goal of universal healthcare access.