Total Knee Replacement (TKR), one of the most common surgeries in the United States, is performed when the patient is experiencing significant amounts of pain or when knee functionality has become substantially degraded. Despite impressive recent developments, only about 85% of patients are satisfied with the pain reduction after one year. Therefore, structural health and performance monitoring are integral for intraoperative and postoperative feedback. In extension of the author's previous work, a new configuration for implementation of piezoelectric transducers in total knee replacement bearings is proposed and FEA modeling is performed to attain appropriate sensing and energy harvesting ability. The predicted force transmission ratio to the PZT (ratio of force applied to the bearing to force transferred to the embedded piezoelectric transducer) is about 6.2% compared to about 5% found for the previous encapsulated design. Dimensional parameters of the polyethylene bearing including the diameter and depth of the PZT pocket as well as the placement geometry of the PZT transducer within the bearing are hypothesized as the most influential parameters on the performance of the designed system. The results show a small change of 1% and 2.3% in the output of the system as a result of variation in the PZT location and pocket diameter, respectively. Whereas, the output of the system is significantly sensitive to the pocket depth; a pocket 0.01 mm deeper than the PZT transducer leads to no force transmission, and a pocket 0.15 mm shallower leads to full load transmission to the PZT. In order to develop a self-powered sensor, the amount of energy harvested from tibial forces for the proposed geometry is investigated.