The potential exists to reduce or control some aspects of the U.S. health care expenditure without compromising health care delivery by developing carefully selected technologies which impact favorably on the health care system. A focused effort to develop such technologies is underway at Sandia National Laboratories. As a DOE National Laboratory, Sandia possesses a wealth of engineering and scientific expertise that can be readily applied to this critical national need. Appropriate mechanisms currently exist to allow transfer of technology from the laboratory to the private sector. Sandia's Biomedical Engineering Initiative addresses the development of properly evaluated, cost-effective medical technologies through team collaborations with the medical community. Technology development is subjected to certain criteria including wide applicability, earlier diagnoses, increased efficiency, cost-effectiveness and dual-use. Examples of Sandia's medical technologies include a noninvasive blood glucose sensor, computer aided mammographic screening, noninvasive fetal oximetry and blood gas measurement, bum diagnostics and laser debridement, telerobotics and ultrasonic scanning for prosthetic devices. Sandia National Laboratories has the potential to aid in directing medical technology development efforts which emphasize health care needs, earlier diagnosis, cost containment and improvement of the quality of life.