I'm a student EMT and our instructor told us not to rely on a pulse ox reading if our patient has dark skin, or if they were in a fire, or are a lifelong smoker, or if they have any nail polish or dirt/grease on their fingertips. We just look for the 94-100% range and would only take action if we get a reading around 87% or lower, or see a sudden drop during treatment. There are a few alternatives designs that aim to…
On how these devices work, it is typically two LEDs the produce light that bounces through the skin, some light is absorbed by blood (different absorption by different oxidation and density) then the reflected light is captured by a photodiode. All of this is on one surface, they are very basic. The density changes rapidly and that's how you capture the pulse (easy to get btw) and the oxidation is based on absolute levels (THIS IS THE PROBLEM!!!!). After building one I learned to not take these things too seriously, especially fingertip and wrist mounted ones.
I encourage others to build them. You can do most of it in a weekend if you have some soldering experience (best if you can do surface mount soldering), some programming, and are comfortable doing data analysis. And no, I do not expect my device to be on par with the ones in hospitals, but I was quickly able to match readings from a finger based device that I bought from the local drug store.