Cato Institute
Policy Analysis
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Page 14
The FDA review process imposes significant delays upon the
marketing of new devices.
A Brief History of Medical Device Regulation
The fundamental sanctioning law of the FDA, the Federal
Food, Drug, and Cosmetic Act of 1938 (FDC Act), clearly
separated medical devices from pharmaceuticals and gave the
FDA power of premarket approval over pharmaceuticals but
gave it no corresponding power over medical devices.
("Pharmaceuticals" are products that produce an effect
through chemical or metabolic action.  "Biologics" are prod-
ucts of biological origin that have pharmaceutical proper-
ties.) A "medical device," according to the General Account-
ing Office (GAO), "can be any product used to cure, prevent,
diagnose, or treat illness, provided that its principal
intended purposes are not achieved primarily by chemical or
metabolic action."27  Devices range from Band-Aids and
tongue depressors to kidney dialysis units and heart lung
machines.
Under the 1938 law, the FDA's options for regulating
devices were limited to asking the courts for the authority
to block new devices or to remove existing devices from the
market.  Within that limited sphere, the FDA blocked or
removed dozens of fraudulent medical devices during the next
quarter century.  Following passage of the 1962 amendments
to the FDC Act, which expanded the FDA's mandate to require
proof of effectiveness as well as safety for drugs and which
increased the FDA's enforcement powers, the FDA struggled to
secure the same authority over medical devices that it al-
ready had over drugs.28
The Medical Device Amendments of 1976 enjoined the FDA
to "provide reasonable assurance of the safety and effec-
tiveness of the device[.]"  Safety and effectiveness were to
be determined with respect to the device's intended user,
its prescribed or recommended uses, and its probable benefit
weighed against the probable risk of illness resulting from
its use.
The most significant aspect of the 1976 amendments was
the establishment of the FDA as the gatekeeper over market
access for medical devices.  Power had clearly shifted to
the FDA.  Instead of being required to demonstrate its case
to the satisfaction of a court, the FDA could now ban devic-
es on its own legal authority, and it was left to the in-
jured party to seek a judicial review.