Cato Institute
Policy Analysis
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Page 27
The FDA's role is not limited to accredited-party
selection.  In addition, the Agency retains all
the authority it has under current law to make
final product review decisions . . . there is no
presumption given to the accredited party's recom-
mendation of approvability or classification of a
product.57
Although the proposed legislation would probably result
in wider use of third-party review, it represents, in ef-
fect, outsourcing of an activity currently done by FDA
employees.  More positively, should either of the bills or a
compromise between them become law, the legislation might
embolden legislators to further relax the FDA's grip on the
marketing of devices.
Beyond Reform
Reforms are designed to improve or amend a system that
is not functioning properly, not to replace the system.
Reducing the amount of paperwork that goes along with a
regulation is a reform.  Removing an agency's regulatory
power is a remedy, not a reform.
The overriding problem with proposed FDA reforms is
that they leave the medical device approval system unchanged
in its most important aspect.  The FDA will still hold its
gatekeeper monopoly, constricting the market for safe medi-
cal devices.
Independent Review Panels Are Not Independent
Congress has long favored "independent review panels"
as checks on FDA actions, and there are sixteen standing
scientific/medical review panels under the Medical Device
Committee in the FDA's Office for Device Evaluation.  (Each
of the required quarterly meetings of each of the 16 panels
costs $20,000.)58 In addition to subject matter experts, the
medical-device review panels include a consumer's represen-
tative and an industry representative, in nonvoting roles.
The only difference between panel members and regular FDA
personnel is that the members are designated as "special
government employees," meaning that they can work for the
government only a certain number of hours per year.
Many of the problems with FDA review can be traced to
the panels.  This is not an indictment of the panel members,
but of an FDA structure that produces problems that can be