Abstract: A system and method for fusing independent measures of the physiological parameter uses a Kalman filter for each possible combination of sensor measurements. The Kalman filter utilize probability density functions of a nominal error contamination model and a prediction error model as well as past estimates of the physiological parameter to produce the Kalman filter outputs. A confidence calculator uses Bayesian statistical analysis to determine a confidence level for each of the Kalman filter outputs, and selects a fused estimate for the physiological parameter based on the confidence level. The fused estimate and the confidence level are used to dynamically update the nominal error contamination model and prediction error model to create an adaptive measurement system. The confidence calculator also takes into account the probability of artifactual error contamination in any or all of the sensor measurements.