The Oxymizer Pendant is an oxygen-conserving device with a reservoir that rests on the patient's chest. A portion of the supplemental oxygen administered during exhalation is saved in the reservoir and administered in a 20-ml burst at the beginning of subsequent inspiration. The purpose of our study was to determine whether use of the Pendant by hypoxemic patients who require supplemental oxygen would decrease their oxygen requirements and whether it would be cost effective. Materials and Methods: We identified 20 patients who were receiving supplemental oxygen and whose SaO2 on room air was less than 90% (mean 82.4% ± 6.8%) as measured by ear oximetry. After we determined their room-air SaO2, we administered supplemental oxygen to them—first by standard nasal cannula, then by Oxymizer Pendant—recording the amount of oxygen required by each device to produce an SaO2 of at least 90%. Results: We found no significant difference (P > 0.50) between the SaO2 on 1-L/min oxygen via standard nasal cannula (87.4%) and the SaO2 on 1/4-L/min oxygen via the Pendant (87.0%). The mean amount of supplemental oxygen required to produce an SaO2 of at least 90% was significantly less (P < 0.001) with the Pendant (0.88 L/min) than with the standard cannula (2.2 L/min). Conclusions: We conclude that with use of the Pendant the oxygen requirements of hypoxemic patients will be substantially decreased and that a cost savings of as much as 50% may be realized.