[Senate Hearing 112-92] [From the U.S. Government Publishing Office] S. Hrg. 112-92 A DELICATE BALANCE: FDA AND THE REFORM OF THE MEDICAL DEVICE APPROVAL PROCESS ======================================================================= HEARING BEFORE THE SPECIAL COMMITTEE ON AGING UNITED STATES SENATE ONE HUNDRED TWELFTH CONGRESS FIRST SESSION __________ WASHINGTON, DC __________ APRIL 13, 2011 __________ Serial No. 112-4 Printed for the use of the Special Committee on Aging Available via the World Wide Web: http://www.fdsys.gov U.S. GOVERNMENT PRINTING OFFICE 67-694 WASHINGTON : 2011 ----------------------------------------------------------------------- For sale by the Superintendent of Documents, U.S. Government Printing Office Internet: bookstore.gpo.gov Phone: toll free (866) 512-1800; DC area (202) 512-1800 Fax: (202) 512-2104 Mail: Stop IDCC, Washington, DC 20402-0001 SPECIAL COMMITTEE ON AGING HERB KOHL, Wisconsin, Chairman RON WYDEN, Oregon BOB CORKER, Tennessee BILL NELSON, Florida SUSAN COLLINS, Maine BOB CASEY, Pennsylvania ORRIN HATCH, Utah CLAIRE McCASKILL, Missouri MARK KIRK III, Illnois SHELDON WHITEHOUSE, Rhode Island JERRY MORAN, Kansas MARK UDAL, Colorado RONALD H. JOHNSON, Wisconsin MICHAEL BENNET, Colorado KELLY AYOTTE, New Hampshire KRISTEN GILLIBRAND, New York RICHARD SHELBY, Alabama JOE MANCHIN III, West Virginia LINDSEY GRAHAM, South Carolina RICHARD BLUMENTHAL, Connecticut SAXBY CHAMBLISS, Georgia ---------- Debra Whitman, Majority Staff Director Michael Bassett, Ranking Member Staff Director CONTENTS ---------- Page Opening Statement of Senator Herb Kohl........................... 1 Statement of Senator Bob Corker.................................. 2 Statement of Senator Mark Udall.................................. 2 Statement of Senator Kelly Ayotte................................ 3 Statement of Senator Michael Bennet.............................. 19 PANEL OF WITNESSES Statement of Katie Korgaokar, Patient, Denver, CO................ 5 Statement of Marcia Crosse, Director, Health Care, Government Accountability Office, Washington, DC.......................... 7 Statement of Diana Zuckerman, President, National Research Center for Women and Families, Cancer Prevention and Treatment Fund, Washington, DC................................................. 9 Statement of Frederic Resnic, Assistant Professor of Medicine, Harvard Medical School and Director of the Cardiac Catheterization Laboratory, Brigham and Women's Hospital, Boston, MA..................................................... 11 Statement of Ralph Hall, Distinguished Professor, University of Minnesota Law School, Minneapolis, MN.......................... 13 Statement of David Nexon, Senior Executive Vice President, Advanced Medical Technology Association (AdvaMed), Washington, DC............................................................. 15 Statement of William Maisel, Deputy Center Director for Science and the Chief Scientist, Center for Devices and Radiological Health, Food and Drug Administration, Silver Spring, MD........ 17 APPENDIX Witness Statements for the Record: Katie Korgaokar, Patient, Denver, CO............................. 40 Marcia Crosse, Director, Health Care, Government Accountability Office, Washington, DC......................................... 43 Diana Zuckerman, President, National Research Center for Women and Families, Cancer Prevention and Treatment Fund, Washington, DC............................................................. 65 Frederic Resnic, Assistant Professor of Medicine, Harvard Medical School and Director of the Cardiac Catheterization Laboratory, Brigham and Women's Hospital, Boston, MA....................... 72 Ralph Hall, Distinguished Professor, University of Minnesota Law School, Minneapolis, MN........................................ 81 David Nexon, Senior Executive Vice President, Advanced Medical Technology Association (AdvaMed), Washington, DC............... 107 William Maisel, Deputy Center Director for Science and the Chief Scientist, Center Devices and Radiological Health, Food and Drug Administration, Silver Spring, MD......................... 120 Additional Statements Submitted for the Record: Terrie Cowley, President, The TMJ Association, LTD............... 140 Kevin Fu, Ph.D., Department of Computer Science, University of Massachusetts, Amherst, MA..................................... 158 Janet Holt, Texas................................................ 185 Lana C. Keeton, President and Founder, Truth in Medicine, Miami Beach, FL...................................................... 191 Beverly J. Pennington, Roopville, GA............................. 197 Rita Redberg, MD, MSc, Professor of Medicine, University of California..................................................... 200 A DELICATE BALANCE: FDA AND THE REFORM OF THE MEDICAL DEVICE APPROVAL PROCESS ---------- WEDNESDAY, APRIL 13, 2011 U.S. Senate, Special Committee on Aging, Washington, DC. The Committee met, pursuant to notice, at 2:03 p.m., in Room SD-562, Dirksen Senate Office Building, Hon. Herb Kohl, Chairman of the Committee, presiding. Present: Senators Kohl [presiding], Wyden, Nelson, Udall, Bennet, Blumenthal, Corker, and Ayotte. OPENING STATEMENT OF SENATOR HERB KOHL, CHAIRMAN The Chairman. Good afternoon. We would like to thank the members as well as our witnesses for being here with us today. We are examining a very important topic today--the Food and Drug Administration's management and oversight of the thousands of medical devices countless Americans rely on every day. The overall success of this process has become even more urgent for seniors in recent years. Innovative technology has provided valuable lifesaving medical devices that have prolonged life and reduced suffering. We need to do all we can to make sure that these new medical products are getting to the market quickly as well as safely. However, the FDA must constantly strive to maintain a delicate balance between safety and innovation. As we will hear today, this is an extremely difficult assignment. The medical device industry has understandable concerns that significant changes in the medical device approval process contemplated by FDA could slow the rapid progress of new medical technologies to hospitals, patients, as well as the marketplace. They have also expressed concerns to the agency about a lack of consistent and clear guidance on how to get medical devices approved. However, the drive toward getting new technologies to market should not be done at the risk of patient safety. Faulty medical devices, especially those implanted in the body, can have a disastrous impact on the health of those who use them. Today, we will hear a firsthand account of the trauma that occurs when an implantable medical device must be removed due to a recall and device failure. As we hear about the cost to patients, we should not forget the cost of recalls to the healthcare system as a whole. We will have an update from the GAO, which has been investigating FDA's handling of the medical device approval process for the last several years. Somewhat disturbingly, this process has remained on the GAO's high-risk list of Government programs for 2 years now. GAO will also report on FDA's fast- track approval process for medical devices, which accounts for more than 95 percent of all medical device approvals and helps get medium- and low-risk devices to patients faster. Finally, a top FDA medical device expert will discuss the complex and daunting challenges of overseeing medical device products in a time of tight budgets and exploding global medical technologies. I believe we can find ways to improve safety in medical devices without hampering medical innovation. We look forward to hearing the ideas of our witnesses on how we can improve postmarket surveillance, improve adverse events reporting, and ensure that high-risk medical devices get the safety review that they need. We look forward to hearing everyone's testimony today, and we turn now to Senator Bob Corker. STATEMENT OF SENATOR BOB CORKER Senator Corker. Thank you, Mr. Chairman. And thank all of you for being here, and I appreciate the breadth of panelists that we have and look forward to your testimony. I think our goal is to achieve a balance. There are concerns on one hand that there may be devices that end up making it to the market where there are problems. And then, on the other hand, there are a lot of concerns where, for instance, in the European Union, a lot of times complex medical devices end up making it to the market 4 years earlier and actually create ways for people to have better ways of life. There is concern about the safety, but there is also a concern that the FDA has become a place that is really about risk avoidance. I look forward to hopefully very balanced testimony today and hope at the end of this we are able to have a very good understanding of the direction the FDA ought to take. I thank the chairman for having this. Obviously, this is very important to every American. Almost every American has some type of medical device that they use. So I thank you for this hearing today, Mr. Chairman, and look forward to the testimony. The Chairman. Thank you, Senator Corker. Senator Udall. STATEMENT OF SENATOR MARK UDALL Senator Udall. Thank you, Mr. Chairman. I want to thank you and Ranking Member Corker for holding this hearing today, and I want to thank the witnesses for taking time out of your busy schedules to share your various testimony with us. I want to add to what the chairman said, which is we are here today to talk literally about life-altering and, in many cases, life or death issues for Coloradoans and for patients across the country. Our goal has to be to explore the steps necessary to make sure that innovative and evolving technology represented by medical devices is as lifesaving and life- improving as possible. Ms. Korgaokar, I know that the chairman will give you a formal introduction later. But as one of my constituents, Katie, I think you are from Denver? Ms. Korgaokar. Yes. Senator Udall. I want to thank you for having the bravery to be here today and for sharing your story. Experiences like yours are why this hearing is so, so important. The twin goals of the FDA require a very difficult, yet absolutely critical balancing act. Making sure, on the one hand, that doctors and patients have access to safe and effective devices while also fostering innovation in the medical device industry. Dr. Maisel, I think in your written testimony, you assert that the FDA cannot ensure this balance alone, and I agree. The medical device industry must be a responsible and responsive partner in this effort. And additionally, those here behind the dais and the rest of Congress must vigorously exercise oversight role, as Chairman Kohl has brought us here to do today. I regret that I have some prior commitments that will not allow me to stay and listen to everybody's testimony. But I have reviewed your written testimony, and I look forward to hearing the transcript from what I hope and, actually, I know will be a spirited and fruitful conversation during this hearing. I don't think anyone expects that the approval, postmarket surveillance, and recall process for medical devices will ever be completely mistake free. However, the status quo needs work. And while I applaud the FDA for taking significant steps to tighten up this process with a goal of increasing safety and efficiency, I look forward to continued and expeditious action on the part of both the agency and industry to improve this process. We owe it to patients like Katie. Thank you, Mr. Chairman. Thank you, Senator Corker. The Chairman. Thank you very much, Senator Udall. Senator Ayotte. STATEMENT OF SENATOR KELLY AYOTTE Senator Ayotte. Thank you very much, Chairman Kohl and Senator Corker, Senator Udall as well. And I want to thank all of our witnesses who are here today, and I look forward to hearing your testimony. I want to echo the comments that have already been made by the Senators on this panel. The FDA performs a very critical role. It is a critical regulatory agency that has to have a system that is safe, efficient, consistent, and thorough. One of the issues that I am looking forward to addressing today is making sure that we have safe products that come forward through the process. I am deeply troubled by reports that our nation's leadership in medical technology could be declining as medical device technology companies, due to the review process, are increasingly looking to other countries for approval on innovative products. We want to be on the cutting edge of making sure that we get the best technology that is not only safe, but the lifesaving products to United States consumers in as fast as possible process while making sure that it is safe. Medical device companies are a strong and vibrant part of the United States economy, and in my own home State of New Hampshire, we have over 50 medical device companies. Over the last recess, I had the opportunity to visit three medical device companies that are doing very important work in our State, including one--Salient Surgical in Portsmouth--that is making technology that reduces blood loss during major surgery. And one of the things I was very struck by is that, when you walk into their conference room, you see the pictures on the walls of patients whose lives that they have saved. Additionally, I visited another medical device company in New Hampshire, one called Next Step Orthotics that produces custom prosthetics for those who have lost a limb. Many of our wounded warriors, young people, old people, and even infants, are now being able to have that mobility and use, even though they have suffered situations where they have lost a limb. The technology is amazing. My point is that we want to make sure that we are on the cutting edge in this country. While protecting people like Katie, we must also make sure that this process doesn't put us behind other countries when looking at our global competitiveness. I was deeply troubled to learn that we could be a couple of years behind other countries in regards to approving on safe technologies that are coming forward. So I look forward to hearing about the review process today and how we can work with you to make that process better, more efficient, and safer for patients. Finally, I want to touch briefly on a topic that I know won't be the full subject of this hearing, but it is one that I am very concerned about and that I heard concern about from the medical device companies in my State. In the healthcare bill that was passed, there is a new tax on medical device companies that is actually, in my view, a tax on innovation. It is not only a tax on the profit of these companies, but actually taxes their revenue. One of the concerns I have about that tax is that it is not going to allow the development of new research and development and technologies. So I look forward to also working with my colleagues to address the onerous burden this tax places on an important part of our economy. The industry is not just important for the jobs that it creates in my State and across the country, but also for the important products that come forward to save and improve the quality of life of the citizens of our country, not only in New Hampshire. So thank you all for being here today. I look forward to hearing your testimony. The Chairman. Thank you, Senator Ayotte. We will now turn to our panel of witnesses. First, we will be hearing from Katie Korgaokar of Denver, Colorado, who received a DePuy ASR hip implant when she was 36 years old, but after a few years needed revision surgery to remove the recalled device. Next we will be hearing from Marcia Crosse, Ph.D., the director of the healthcare team in the U.S. Government Accountability Office. Dr. Crosse will discuss a forthcoming GAO report on medical device recalls. I would like to acknowledge my Judiciary Committee colleague Senator Grassley for allowing us to sign on to his GAO request on this issue and to discuss its findings here today. Next we will be hearing from Diana Zuckerman, Ph.D. She is currently the president of the National Research Center for Women and Families. After a distinguished academic career, Dr. Zuckerman worked in the House of Representatives and served as a senior policy adviser to First Lady Hillary Rodham Clinton. Next we will be hearing from Dr. Frederic Resnic, assistant professor of medicine at Harvard Medical School and director of a lab at Brigham and Women's Hospital in Boston. Then we will be hearing from Ralph Hall, who is a distinguished professor at the University of Minnesota Law School, counsel to the Indianapolis law firm of Baker & Daniels, and a member of the board of directors of the Food and Drug Institute. Previously, Professor Hall was senior vice president and deputy general counsel at Guidant and headed Eli Lilly's environmental law group. Next we will be hearing from Dr. David Nexon, who is a senior executive vice president of the Advanced Medical Technology Association, or AdvaMed, where he is responsible for the organization's domestic policy. Previously, Dr. Nexon served for more than 20 years as a Democratic health policy staff director for the Senate HELP Committee and its chair, Senator Edward M. Kennedy. And last, we will be hearing from Dr. William H. Maisel, who is the deputy center director for science and chief scientist at the Center for Devices and Radiological Health at the FDA, where he works to guide the agency in science-based decision-making. Previously, Dr. Maisel served as associate professor at Harvard Medical School and founded and directed the Medical Device Safety Institute at Boston's Beth Israel Deaconess Medical Center. Welcome to you. Welcome to you all. And now we will start with you. STATEMENT OF KATIE KORGAOKAR, PATIENT, DENVER, CO Ms. Korgaokar. Chairman Kohl, Ranking Member Corker, and members of the committee, I thank you for giving me the opportunity to testify today. I am here to give a patient's perspective of what happens when a defective medical device is released to the public. Specifically, I was one of the 96,000 unlucky people who received the DePuy ASR prosthetic hip that was recently recalled in August 2010. The reason I needed a new hip was because I was born with a congenital condition known as Perthes disease. This disease caused the premature deterioration of bones in my hip joint. Beginning in my early 30s, I began experiencing extreme pain on a fairly regular basis and had trouble with mobility. Eventually, the pain in my hip became so unbearable that I consulted with an orthopedic surgeon to see if there was anything he could do to relieve my symptoms. He recommended total hip replacement surgery. Prior to my operation, my surgeon and I discussed the type of hip that he would use. He told me that it was a new, state- of-the art, metal-on-metal hip that was specifically designed for young active people such as myself. He told me that the metal-on-metal design was superior to other designs and that it should last at least 20 years or more. The new state-of-the-art hip that the surgeon used was the DePuy ASR. The initial hip replacement surgery was a huge success. Within 3 months of the surgery, I was essentially pain free and was able to engage in activities that had previously been off limits. The surgery truly changed my life. Three years later, I met my husband, and we were married. Both my husband and I had always wanted to have children and immediately began trying to start a family. However, about 8 months later, our plans changed. At this time, I received a letter from my surgeon advising me that the hip he had put in my body 4 years prior had been recalled. He told me that I needed to come in for an appointment so that he could do an examination. When I heard this news, I really didn't understand the implications of what I was being told. In my mind, recalls were for dishwashers and cars, not body parts. When I met with my surgeon, he explained that there was some type of design problem with the DePuy ASR that was causing excessive wear and tear on the metal components of the hip. As a result, the hip could be releasing metal debris into my body. My doctor told me I needed to have a blood test performed to see if this was happening. There are two metals that I was told that were used that they were testing, which was cobalt and chromium. If the level of these metals were elevated, that meant there was excessive wear and tear occurring. A few weeks later, my doctor called to tell me that the blood tests showed that I did have elevated levels. In fact, my levels were about 1,000 percent higher than they should be. At that time, I became very concerned. I had no idea how these metals would affect my body, and more importantly, I didn't know if they would impact my ability to have children. After speaking with my doctor about these concerns, I learned that research had shown that excessive levels of cobalt in the blood could potentially impact the development of a fetus. I also learned that excessive levels of cobalt and chromium had been linked to several serious health conditions, such as cancer and cardiomyopathy. As a result, my doctor recommended that I have the hip replaced as soon as possible. In January 2011, at age 41, I underwent my second hip replacement surgery. This time, the surgeon installed a more traditional hip with a polyethylene liner in the cup. The recovery from this second operation has been substantially more difficult than my first. The pain is much worse, and it has been extremely difficult to get around. Only recently has my mobility improved to the point where I no longer need crutches. For the past 3 months, I have essentially been confined to my home, trying to recover. Going forward, I have serious concerns about how this will affect my life. I am told that undergoing a hip revision surgery so soon after the first will likely result in me experiencing more pain, dislocations, and other problems down the road. This is because each operation affects the muscles, tendons, and bones in the hip and makes it less stable. I am also told that as a result of this, I may have to undergo one or more additional hip operations later in my life that could have possibly been avoided. Most importantly, however, I fear that given the small window I had to start a family, this operation may have forever prevented me from ever having children. As I learned more about the ASR and the process by which it was approved by the FDA, I was shocked. Prior to this, I thought that any medical device that was actually being put into people's bodies had been extensively tested before it was released to the public. I had no idea that devices could be fast-tracked by the FDA with little or no testing. I also assumed that the FDA had systems in place to monitor drugs and medical devices for potential defects so that prompt action could be taken if problems arose. Apparently, this did not happen with the DePuy ASR. Additionally, I am concerned that the doctors who are actually installing these medical devices may not be fully committed to the well-being of their patients. Specifically, I recently learned that the surgeon who recommended that I have the DePuy ASR installed had actually received more than $600,000 from DePuy in consulting income. A disclosure statement from DePuy is attached. This was never disclosed to me before my surgery. Although I would like to think these payments had no influence on my doctor's decision to use the ASR, I will always have doubts. Thank you, Chairman Kohl and Ranking Member Corker, for holding this hearing and giving me the opportunity to tell my story. I truly hope that you and your colleagues take a serious look at how medical devices are approved in this country and take whatever steps are necessary to make sure incidents like this do not happen again. [The prepared statement of Katie Korgaokar appears in the Appendix on page 40.] The Chairman. Thank you very much, Katie. Marcia Crosse. STATEMENT OF MARCIA CROSSE, DIRECTOR, HEALTH CARE, GOVERNMENT ACCOUNTABILITY OFFICE, WASHINGTON, DC Dr. Crosse. Chairman Kohl, Ranking Member Corker, and members of the committee, I am pleased to be here today as you examine issues related to the regulation of medical devices. Americans depend on FDA to provide assurance that medical devices sold in the United States are safe and effective. Today, I will discuss GAO's findings from our recent work examining FDA's premarket review of device applications and ongoing work looking at the agency's oversight of recalls when medical devices are found to be defective. Let me first provide some general background about medical device reviews. While FDA is responsible for overseeing all medical devices, about two-thirds of medical devices are exempt from FDA premarket review. These are mostly low-risk devices, such as bandages and tongue depressors. The remaining one-third of devices require greater regulation and must be reviewed by FDA before they are marketed. Over 90 percent of these devices are reviewed through FDA's premarket notification process known as the 510(k) process. The remaining small percentage of medical devices are considered high risk, including implantable or life-sustaining devices like pacemakers and replacement heart valves, and these devices are generally subject to FDA's premarket approval, or PMA, process. The 510(k) process is less stringent than the PMA process. For 510(k) submissions, clinical data are generally not required, and clearance decisions will normally be based on comparative device descriptions, including performance data. For the more stringent PMA process, manufacturers typically submit clinical data, but FDA doesn't always require clinical data, even for implantable devices. In January 2009, we reported on a key area of concern regarding FDA's premarket reviews. When Congress established FDA's premarket review system for medical devices in 1976, it envisioned that all high-risk devices would be subject to the more stringent PMA process. Nonetheless, we found that more than 30 years after Congress acted, FDA had still not completed the regulatory steps necessary to require PMA reviews for some two dozen types of high-risk devices, including certain implantable devices. We recommended that FDA move expeditiously to address this issue. Since then, FDA has issued a final rule regarding the classification of only one of these device types and has started, but not completed actions on the remaining 26 types of high-risk devices that can still enter the U.S. market through the less stringent 510(k) process. These include devices such as implantable hip joints of the type we just heard about. Since our report in January 2009, FDA has cleared at least 67 submissions that fall within these 26 types of devices that await final rules from FDA. In addition to the concerns we identified with premarket reviews, FDA also faces challenges in postmarket surveillance of medical devices. In our ongoing review of medical device recalls, which we are conducting at the request of Senator Grassley and you, Mr. Chairman, we have identified gaps in FDA's processes that could allow unsafe or ineffective devices to continue to be used despite being recalled by the manufacturer. Our preliminary analysis of medical device recalls found that firms initiated about 700 recalls per year. However, we found that firms frequently were unable to correct or remove all recalled devices, even those subject to the highest risk, or Class I recalls. In addition, our preliminary findings indicate that FDA lacks clear guidance for overseeing recalls, resulting in inconsistencies in FDA's assessments of whether individual recalls were implemented effectively. We also found that FDA's decisions in reviewing recalls were often slow. Finally, our ongoing work suggests that FDA is missing an opportunity to proactively identify and address the risks presented by unsafe devices. FDA does not routinely perform analyses of recall data and does not use such information to effectively monitor and manage its recall program. As a result, FDA could not provide basic information to explain trends, such as why the majority of recalls are medium risk, why high-risk recalls more than doubled between 2008 and 2009, or why many recalls have been ongoing for 5 years. We believe it is essential that FDA take steps to provide a reasonable assurance that medical devices entering the market are safe and effective and that the agency's postmarket safety efforts are both vigorous and timely. Mr. Chairman, Ranking Member Corker, this concludes my prepared remarks. I would be happy to answer any questions that you or members of the committee may have. [The prepared statement of Marcia Crosse appears in the Appendix on page 43.] The Chairman. Thank you very much, Marcia. Now we hear from Diana Zuckerman. STATEMENT OF DIANA ZUCKERMAN, PRESIDENT, NATIONAL RESEARCH CENTER FOR WOMEN AND FAMILIES, CANCER PREVENTION AND TREATMENT FUND, WASHINGTON, DC Dr. Zuckerman. Thank you for the privilege of testifying at this important hearing. I am president of the National Research Center for Women and Families, a think tank dedicated to improving the health of adults and children, and I am also testifying on behalf of our Cancer Prevention and Treatment Fund. I was trained in epidemiology at Yale Med School, was on the faculty at Vassar and Yale, and a researcher at Harvard. I am currently a fellow at the University of Pennsylvania Center for Bioethics, and my FDA expertise started when I was a committee staffer in Congress. Today, I will talk about our recently published study in the prestigious Archives of Internal Medicine. We studied the recalls from 2005 to 2009 that FDA designated as the highest- risk recalls because they could cause death or permanent harm to patients. We found that most of those devices were not approved through the PMA process. They were cleared through the 510(k) process or, in some cases, even exempt from review because they were thought to be such low risk. GAO has explained that FDA is ignoring the law when it clears high-risk devices through the 510(k) process. I will explain how that harms patients. There are three essential safeguards that the PMA process has that are missing from the 510(k) process. Number one: clinical trials. There are no clinical trials required, so it is not tested on patients. Number two: no required inspections before they can be sold, so you don't know if they are manufactured as they are supposed to be. And number three: when they are cleared for the market, the FDA can't require postmarket clinical trials or epidemiological studies as a condition of approval. So the FDA doesn't have the studies before they are allowed to be sold, and they can't require them as a condition of approval to make sure they are safe after they are sold. Defenders of the status quo have said that what is important is that less than 1 percent of device applications are later subject to a high-risk recall, and that might make sense from a business point of view, but it really doesn't make sense from a public health or public policy point of view. Americans are dying and being harmed because their devices are not being tested before they are sold and, in some cases, put in their bodies. As a scientist and a logical person, I believe that, if a device can kill you, it is not a low-risk or moderate-risk device. And I am not talking about lightning striking out of the blue. I am talking about an implant that deteriorates in the human body or a diagnostic test that is not accurate. Those are predictable but life-threatening problems that have caused recalls, and we can reduce those. We don't celebrate every time we eat a meal that doesn't poison us, and yet Congress has recently improved the food safety system. And I just want to say it is wonderful that Congress has done that, even though food is quite safe, and similarly, we could save a lot of lives not just in food safety, but also in device safety. Devices are common. Those of us who wear contact lenses or hearing aids, or have a replacement hip or knee, or had Lasik or Botox, or use test strips for diabetes, we rely on medical devices every day. More than 430 million devices were subject to high-risk recalls in just the first 6 months of last year. That is more than one device for every man, woman, and child in the United States. It doesn't make sense that standards for even the most innocuous drug, such as a constipation medication, are more rigorous than for lifesaving medical devices. Analyses that have been done that are similar to our study, such as Mr. Hall's and AdvaMed's analysis, would not meet the standards of a peer-reviewed medical journal or even of the research methods course that I used to teach. I won't go into statistical details, but I am happy to answer any questions about that. There were almost 8,000 moderate-risk recalls in the last 5 years, such as Katie's hip. If you add those to the 113 high- risk recalls and divide even by Mr. Hall's estimated 20,000 submissions of devices, devices would not have a 99 percent safety record. It would be 60 percent. And if you use the numbers that GAO has provided, which was 700 recalls per year, then still the safety record would be about 82 percent. So that is much, much lower than the 99.5 percent that has been quoted and that you will be hearing about from other witnesses. We need to count moderate-risk recalls, not just high-risk recalls because, as you have heard from Katie, they are hugely expensive and debilitating, and there is also the risk of death from additional surgery. We don't know how many people die every year from unsafe medical devices because hospitals are required to report them, but doctors are not. Even so, there were almost 5,000 reported deaths from medical devices in 2009 and hundreds of thousands of serious complications, and these are considered the tip of the iceberg because doctors don't report them to the FDA. In conclusion, lives could be saved and patients would spend less time in the hospital if FDA implemented the law as required, as GAO has specified, and billions of Medicare dollars could also be saved. The 510(k) process may be acceptable for devices that are truly low or moderate risk, but not for implanted devices or those that diagnose or treat potentially deadly diseases. Thank you for the opportunity to testify. And I know that some of these numbers are rather hard to deal with, and I would be happy to answer any questions about them. [The prepared statement of Diana Zuckerman appears in the Appendix on page 65.] The Chairman. Thank you so much, Diana. Now we will hear from Frederic Resnic. STATEMENT OF FREDERIC RESNIC, ASSISTANT PROFESSOR OF MEDICINE, HARVARD MEDICAL SCHOOL AND DIRECTOR OF THE CARDIAC CATHETERIZATION LABORATORY, BRIGHAM AND WOMEN'S HOSPITAL, BOSTON, MA Dr. Resnic. Chairman Kohl, Ranking Member Corker, Senator Ayotte, I would like to thank you so much, and as well as your staff, for the privilege of testifying today. I respectfully refer you to my submitted testimony for details regarding my research in the area of medical device safety monitoring and for further information regarding the issues that I will only discuss briefly today. To start, I am an interventional cardiologist, practicing at Harvard Medical School, where I use innovative medical devices daily in the treatment of my patients. I have, therefore, witnessed the tremendous benefits that medical devices can provide, and I have also seen the devastating complications that can occur when they fail. In addition, I lead a research program funded through the NIH and FDA, investigating strategies to monitor medical device safety through continuous surveillance techniques. To begin, medical devices, regardless of the approval pathway, will rarely, but inevitably fail, causing injury and even death. Despite the best-designed clinical trials and diligent premarket review, we can never, never know exactly how devices might cause harm until enough real-world experience is gained. Unfortunately, the systems currently used to assure that medical devices are safe after market approval are really a patchwork of voluntary and passive event-reporting mechanisms. These systems rely on individual case reports submitted to the FDA, which then seeks to determine whether emerging trends indicate real safety problems. Despite efforts to encourage reporting, the GAO has estimated that less than 1 in 200 actual device failures are reported to the FDA, tremendously limiting the information available. While these passive systems can identify previously unexpected safety concerns, they do not provide any information regarding the real-world usage of the devices or what is called the denominator data. Therefore, we can't understand the actual rate of device failure and can't compare one device to another. Despite the challenges of the current systems, as well as the unique challenges of medical devices as opposed to medications, I believe there is a clear path to improving medical device safety monitoring that would not stifle industry innovation. This strategy is based on using active and continuous surveillance of health registries to detect safety signals in a timely manner. Computerized tools are capable of monitoring hundreds of high-risk medical devices simultaneously, able to constantly watch accumulating database of clinical experience. Much like a smoke alarm, such systems can trigger an alert when the rate of a device failure or a complication rises above a threshold that would provide the analysts at FDA or other stakeholders with additional tools to drill down to explore the possible causes of safety alerts. Recent pilot studies performed by my research group and others have used these continuous surveillance techniques to detect safety risks for heart stents, as well as to identify device failures years before the current passive systems would have been able to do so. On the basis of these pilot studies, leading U.S. experts in healthcare safety and quality have called for broadly applying automated prospective surveillance of medical registries as a principal way to improve the medical device safety surveillance that is currently used in the United States. Of course, the first step in moving to this model of continuous safety surveillance is to address the critical need and current deficiency for detailed medical device registries. While detailed registries are mandatory in many countries, there is no U.S. system to assure that registries exist for high-risk, even very high-risk implantable devices, and no resources are directed to support these efforts. Despite this, several nonprofit professional medical organizations have recognized the critical need for such registries and have spearheaded their development in an effort to analyze and to improve the quality of healthcare. I would cite the American College of Cardiology, which has put together several of these registries containing over 3 million records from over 1,000 hospitals. Also the Society of Thoracic Surgery and new efforts from in orthopedics, ophthalmology, and surgical material implants are all in development. Importantly, FDA, through the new MDEpiNet initiative of the Center for Devices and Radiological Health, has been instrumental in trying to bring these dataset owners together with safety scientists to collaborate on device safety surveillance pilot projects. Another innovative effort has been the INTERMACS registry. It is a public-private partnership that involved the NIH, CMS, FDA, industry, and academia, which collects information on every patient who underwent implantation of a very high-risk device, a mechanical heart pump. As part of this registry, CMS actually requires participation in order to qualify for payment, and also the registry satisfies the FDA's postapproval condition of approval requirements, thus redirecting resources spent by industry toward a more sustainable and generally usable and valuable resource. So, in summary, the postapproval monitoring of medical devices in the United States, I believe, requires significant enhancement to avoid preventable injury and death to patients treated with high-risk medical devices that infrequently, but predictably, fail. I believe that, aligning incentives, the U.S. can establish a comprehensive medical device registry that will continuously monitor for safety signals, and I would respectfully ask the committee to consider the following recommendations. First, FDA, in collaboration with CMS, should mandate detailed information regarding high-risk medical devices be universally submitted to national registries. Number two, registries should be operated by independent academic or professional medical societies as part of public- private partnerships, informed and guided by MDEpiNet and the FDA's Sentinel program. Third, the FDA should redirect the resources currently spent by the medical device industry on limited condition of approval studies to support medical device safety registries and surveillance. Fourth, automated safety surveillance should be uniformly applied to these registries to continue monitoring each and every high-risk device for safety over time. And the results of these surveillance efforts should be provided in near real time to the FDA to interpret and potentially relay to stakeholders, as well as to providers and patients, as well as to device manufacturers, to support in their innovation and refinements in their product design. Thank you so much for the opportunity to present. [The prepared statement of Frederic Resnic appears in the Appendix on page 72.] The Chairman. Thank you very much, Mr. Resnic. Now we will hear from Ralph Hall. STATEMENT OF RALPH HALL, DISTINGUISHED PROFESSOR, UNIVERSITY OF MINNESOTA LAW SCHOOL, MINNEAPOLIS, MN Mr. Hall. Chairman Kohl, Ranking Member Corker, members of the committee, I appreciate the opportunity today to discuss with you the important issues of medical safety. I am going to concentrate on three broad topics--medical device safety, postmarket authorities, and recall authorities. My emphasis is on systems and authorities, as compared to individual implementation in specific cases, and what I hope to do is to provide information about the authorities that the agency currently has. But to start, let us talk about the safety issues. When the debate over the 510(k) program first began in earnest several years ago, I was struck by the fact that there was no good data assessing at a system level the performance of the 510(k) system. It was a collection of anecdotes and opinions on all sides. That struck me, and so, therefore, with the financial support of the Kauffman Foundation, which was with complete academic freedom, I undertook a systemic study of the 510(k) and PMA systems from a safety perspective. We used Class I safety recalls as the starting point because those are the high-risk safety issues. Other studies use the same starting point. And it is important to note that FDA, not industry, is the one that assigns that classification. We coded these for a significant number of factors. Most importantly, we coded these for the reason for the recall. And if you want to improve the premarket system by using this type of data, you have to understand the reason for the recall. Otherwise, you don't know what you are trying to solve. For example, if you have a manufacturing problem, a mistake in the manufacturing line, 7 years after the product was approved or cleared, that is a quality system issue. That is not a premarket issue. We also tried to establish a denominator to get an overall system performance. All devices have risks. Congress has actually established the balance point between the twin goals of improving public health via the availability of innovative devices and the safety that is so important to all patients. And that is, according to the statute, a ``reasonable assurance'' of safety and effectiveness. And so, my study attempted to determine whether that congressional standard had been met. My conclusion, based upon the data, is that the 510(k) system is meeting the congressional mandate, that it is overall performing very well. Greater than 99.5 percent of the submissions do not result in a Class I recall. More importantly, when you look at postmarket issues, more than half of all problems are from postmarket issues. And when you take that into account, it is greater than 99.7. We also did a subanalysis of the data a number of different ways looking at product types. What we found is that a significant majority of all recalls were caused by quality system issues, both premarket and postmarket, rather than a lack of clinical data. We also identified two concentrations of problems in recalls--one in AEDs, the other in infusion pumps--and the agency has, since then, commenced two initiatives to address those two product types. In my estimation, this is the type of data that can be used to improve the safety situation. Using this methodology, we did not find a significant difference in performance between the PMA and the 510(k) systems. There is a lot of other data analysis we can get into if the committee so desires. Moving to postmarket, the question that I am addressing is the authority the agency has. Others can address implementation. And I think it is clear if you look at the statutory authority, the agency has substantial authority in the postmarket realm. For example, they have the authority to mandate registries, whether a PMA product or a 510(k) product. They have the authority to mandate postmarket studies. They have the authority via Section 522 to have postmarket studies for certain types of products. So there are a number of authorities they have that are specific to products. They also have a wide variety of regulatory and statutory powers that apply universally. These are MDR reporting, recall reporting, inspections. And by the way, the agency can go and inspect a medical device manufacturer whenever the agency so determines. There is no requirement that they do anything in advance. They just show up. And so, the agency has substantial premarket and postmarket authority to implement whatever sort of postmarket obligations they believe. They have the authority, even in the 510(k) system, to get clinical data. And in about 10 to 12 percent of all cases, they require that. In terms of recalls, again, the agency has substantial statutory authority. There are obviously voluntary recalls, but they have mandatory recall powers. They can seize products. They can go public with any concerns that they have. They can ban products. They can withdraw products, et cetera. So, in conclusion, based upon the data that we have assessed, the 510(k) system is meeting the congressional mandate from the safety perspective, and the agency has substantial statutory authority in both the premarket and the postmarket arena, as well as in recalls. Thank you very much. [The prepared statement of Ralph Hall appears in the Appendix on page 81.] The Chairman. Thank you, Mr. Hall. Mr. Nexon. STATEMENT OF DAVID NEXON, SENIOR EXECUTIVE VICE PRESIDENT, ADVANCED MEDICAL TECHNOLOGY ASSOCIATION (ADVAMED), WASHINGTON, DC Dr. Nexon. Thank you, Chairman Kohl and Ranking Member Corker and members of the committee, for the opportunity to testify on behalf of the Advanced Medical Technology Association. We are proud that the U.S. medical device industry is an American success story. We employ more than 400,000 workers nationwide, including more than 14,000 in your home State of Wisconsin, Chairman Kohl. We are one of the few manufacturing industries with a favorable balance of trade. Our wages are well above average. A strong and vibrant medical technology industry is important to American growth and competitiveness. Most of all, it is important to American patients, who benefit from the new treatments and cures that our industry creates every day. The reason we are so interested in your hearing today is that we in our industry recognize that we can only succeed as an industry if FDA is a strong and successful agency. So we welcome your examination of these issues. I would like to make four main points for the committee. First, FDA has a strong record of assuring that medical devices and diagnostics are safe and effective. Professor Hall described his study showing extremely low recall rates for 510(k) products, indicating that FDA and industry are generally successful in keeping unsafe products off the market. Other recent studies showed similar results, including one by Dr. Maisel. Recall rates are also very low for PMA products. Now I know you have heard some contradictory statistics today, and I would be happy to get into responding to those in the discussion period. Of course, every process can be improved. Nothing is perfect, and our companies and FDA share a commitment to safety. But I want to emphasize there is no indication, no data that shows systemic failures in the assurance of safety that the current premarket review systems provide. Second, the 510(k) clearance process has been criticized as a fast-track process that does not provide for adequate review. The data from the studies I mentioned show that this criticism is misplaced. In fact, the process is quite rigorous, but the data requirements are key to the nature of the device being reviewed and allow an effective path for rapid product improvement and medical innovation. I want to emphasize, and this is something not everyone realizes, that FDA can require any level of data that FDA thinks is appropriate for a 510(k) submission, and that can be up to and including clinical trials. Third, the biggest problem for FDA right now is the failure to assure that patients can have timely and consistent access to new treatments and cures. Since 2005, review times for 510(k) products have increased by 45 percent. Review times for PMA products have increased a whopping 75 percent. Difficulty in getting approval to start a clinical trial, inconsistency in reviews, and slow approvals are drying up investments in promising new therapies, and they are driving clinical trials and first product introductions abroad. The result has been extremely negative for American industry's ability to compete. More important, it has been devastating for American patients, who must now wait 2 to 4 years longer than European patients to get new treatments and cures. At the same time, the good news is that the Administration, from the President on down--and certainly the FDA leadership-- understands that there is a problem and is taking a number of positive steps to improve the situation. We are hopeful they will be able to turn this situation around, and it is critical from the industry's point of view and patient's point of view that improvements come quickly because the current situation really is not sustainable. Finally, let me address the postmarket issues. As detailed in my written testimony, and as Mr. Hall mentioned, FDA has robust postmarket authorities, including mandatory recall authorities. Turning to the issue of surveillance, Dr. Maisel's testimony describes the numerous efforts FDA has underway to improve the quality and timeliness of surveillance. The most promising, in our view, is the use of electronic medical records in conjunction with unique device identifiers. This will enable FDA to get real-time data on performance of individual devices across a large number of users and settings and will be invaluable to both FDA and manufacturers in identifying problems and targeting improvements. I am talking about the kinds of studies that Dr. Resnic identified. I do want to add, though, a word of caution with regard to attempts to rely on single-purpose registries as a major strategy for improving postmarket review. Registries offer very valuable data, not just on device performance, but other aspects of quality care. And AdvaMed is pleased that our member companies are partnering with the American Academy of Orthopedic Surgeons to create a hip and knee registry with close to universal coverage. But creating and maintaining single-purpose registries is labor intensive, costly, and requires a major commitment and leadership by providers since they are the ones that have the data on the performance of devices. In general, we think a more practical approach for most devices are registries based on UDI and electronic records, where data is collected as part of the normal course of doing business. Mr. Chairman, AdvaMed and its member companies stand ready to work with you and with the FDA to improve all aspects of FDA's device review and postmarket surveillance programs. Patients are our first priority, and we understand that our industry can only be strong when it partners with a strong and effective FDA. Thank you very much. [The prepared statement of David Nexon appears in the Appendix on page 107.] The Chairman. Thank you, Mr. Nexon. Mr. Maisel. STATEMENT OF WILLIAM MAISEL, DEPUTY CENTER DIRECTOR FOR SCIENCE AND THE CHIEF SCIENTIST, CENTER FOR DEVICES AND RADIOLOGICAL HEALTH, FOOD AND DRUG ADMINISTRATION, SILVER SPRING, MD Dr. Maisel. Mr. Chairman, Ranking Member Corker, and members of the committee, I am Dr. William Maisel, Deputy Center Director for Science and Chief Scientist at the FDA's Center for Devices and Radiological Health. I appreciate the opportunity to be here today to talk about the actions we have taken and the actions we will be taking to enhance medical device safety and to meet our public health goals of assuring the safety and effectiveness of medical devices while fostering important innovations. I joined FDA's device center last summer while it was in the midst of arguably the most comprehensive programmatic review in its 35-year history. As part of that review, the center took a hard look at how we conduct our business, how we utilize new scientific information and make decisions, and how we can improve the health of American patients. We have responded by taking strategic steps to improve the predictability, consistency, efficiency, and transparency of our premarket evaluation and postmarket surveillance of medical devices and to strengthen our scientific decision-making. In January of this year, we announced 25 actions we would take in 2011 to strengthen the 510(k) process, including development of new guidance, enhancement of staff training, and clarification of when clinical data is required in support of device submissions. But these are not the only actions we are taking. We have been actively collecting and reviewing safety and effectiveness information for the 26 remaining Class III 510(k) device types identified in the January 2009 GAO report, and we have committed to completing this evaluation and either reclassify to Class II or issuing a call for PMAs, for all 26 device types by the end of 2012. Throughout the process of soliciting appropriate public input and conducting a thorough evaluation of devices with decades of marketing history, we have continued to promote device improvements and take actions to enhance the public health. For example, our analysis of recall and adverse event data identified cross-industry concerns affecting external defibrillators, one of the devices on this list. And we took action by spotlighting required design, manufacturing, and purchasing controls and by collaborating with the University of Colorado to establish a multi-city external defibrillator registry. We are also transforming the way we conduct postmarket surveillance. Medical devices present unique challenges for postmarket monitoring because of their diversity and rapid product evolution. In 2011, we will issue final rules to increase electronic adverse event reporting that will enhance our ability to perform data mining, use automated computer algorithms to more efficiently and effectively review adverse event reports, and establish the unique device identification system. This latter system will have a profound and positive impact on the Nation's ability to monitor medical device performance, reduce medical errors, track devices, and facilitate recalls. The agency has also taken action to strengthen and improve its recall process. We have improved internal tracking of device recalls and reduced long-overdue device reclassification decisions by over 50 percent in the past year. Our analyses of recall data have been used to target strategic use of our enforcement resources to identify poorly performing devices, manufacturers, or manufacturing facilities. We have also created a tool that better integrates analysis of pre- and postmarket data, including recall information, to provide our medical device reviewers with easier access to comprehensive information that spans the device's total product lifecycle. A similar tool has been made available to the public on the FDA's Web site, consistent with the agency's transparency efforts. Industry shares the responsibility for medical device safety and the success of our device review process. Data shows that some companies submit poor quality applications, ask to meet with us, and then ignore our feedback or conduct poor quality clinical studies. For example, a sample of 510(k) submissions from 2010 showed that, among applications we were forced to place on hold, more than half lacked a basic adequate description of their device. In another sample of submissions that required multiple FDA requests for additional information from manufacturers, nearly 60 percent repeatedly failed to follow FDA published guidance or recognize published standards. These shortcomings waste valuable limited FDA resources and lead to unnecessary delays in the device review process. Nonetheless, under the 510(k) program, the pathway used for 90 percent of the devices we examine each year, 90 percent of our reviews were completed in 90 days or less, and 98 percent of the reviews were completed in 150 days or less, as we committed to do under the Medical Device User Fee Act. FDA evaluates thousands of medical devices annually, and the vast majority of these devices perform well and improve patient health. We are taking actions to further strengthen our scientific decision-making, our premarket evaluation, and our postmarket surveillance of medical devices. The United States is the global leader in medical device development, and FDA's medical device center will continue to support this country's position as the leader in safety, medical device technology, and innovation, while we continue to make good on our commitment to promoting and improving the health of the American public. Mr. Chairman, this concludes my formal remarks, and I would be pleased to answer any questions of the committee. [The prepared statement of William Maisel appears in the Appendix on page 120.] The Chairman. Thank you very much, Dr. Maisel. Before we begin our questioning, I would like to call on Senator Bennet for a statement. STATEMENT OF SENATOR MICHAEL BENNET Senator Bennet. Thank you, Mr. Chairman. And I would like to thank you and the ranking member, Senator Corker, for holding this important hearing. I did want to come by and recognize Katie for coming here and testifying, not just the inconvenience, but the courage to come and testify on behalf of so many people across the State and across the country that have suffered through some of these issues. It is a balance that we need to figure out a way to strike in our State, and my statement speaks to that. But your voice is very important to this conversation. So thank you for being here today. Thank you, Mr. Chairman. The Chairman. Thank you very much, Senator Bennet. Katie, again, we will start with you. In light of your difficulties, we would like to know what advice you have to give to people who are facing their first procedure. Ms. Korgaokar. Honestly, right now, it scares me because I thought I was making the right decision with the doctor I chose. But I don't know what advice to give. The Chairman. If you were starting over, what kind of precautions might you have taken? Ms. Korgaokar. I don't know that there is any I could. I mean, I researched the doctor. I picked him because of his standing, and the device he put in, I just had faith in it. I don't know what I, as a patient, could have done to prevent this. The Chairman. What advice would you give us? As we have this hearing and we are trying to install some procedures, some ideas, some thoughts, what advice would you give us? Ms. Korgaokar. Well, I definitely think that there needs to be a balance. But it still blows me away that something that goes into somebody's body can get approved without proper testing. And frankly, at least for the hips, there were hips that were in place that proved themselves to be good. But this state-of-the-art one that he put inside me, I don't understand why it couldn't have been tested properly and then come out when they knew it was good to go. The Chairman. So you are saying we need to do a lot more testing, moving forward? Ms. Korgaokar. Yes. The Chairman. To be certain that what goes inside someone's body is absolutely safe? Ms. Korgaokar. I absolutely agree with that, especially having to go through a second surgery. The Chairman. Okay. Marcia Crosse, you noted that one major problem in conducting recalls was finding the devices. In conversations with committee staff, Johnson & Johnson discussed the difficulty of locating all of the recalled hips that were implanted in patients. Some are hard to track down. How is it that innovative device firms cannot locate some customers or users? Would FDA's proposed unique device identifier or some similar mechanism help fix this problem? Dr. Crosse. Well, we are looking at the unique device identifier initiative that was required under the FDA Amendments Act, and we will be reporting on that in our forthcoming report on device recalls. It certainly could help, but it is not something that is going to be simply accomplished or quickly accomplished because it is very complicated. You think about all the bar codes that exist on products in your grocery store or your drug store, and that is the same concept here. But you can't really have a bar code that is going to be in somebody's body. So you have to have some other mechanism for tracking that device and getting it into the proper records, and certainly registries are one approach that could be used. But you also have to think about whether or not every physician's office, every hospital is going to have the equipment, the systems in place to be able to use any kind of a consistent approach and the variety that you would have to have for things that come in boxes of a dozen, as opposed to an individual device that might be implanted in somebody's body. So it is not simple, and it is not going to happen quickly. It can help. The Chairman. Okay. Before we turn to Senator Corker, I will ask you, Diana, a question of a lot of conflicting data was presented here about the fast-track 510(k) process and whether it should be changed. You have studied the medical device approval system for a long time. In your opinion, what is the most critical medical device approval issue that FDA needs to address? Dr. Zuckerman. Oh, that is a tough one. I think that actually what Katie said cuts to the core of the issue, and I should say I also had the pleasure of having a hip replacement last year. So I can speak as a patient, too. Here I have all this knowledge. I knew to look on PubMed and all the published medical journals. But there were no data on different hips and which ones would last longer and which ones are better. No data were available at all except some registry data from Scandinavia, and those were on particular models that aren't sold in this country. So I really was stuck with no safety data. And the one thing you can do that Katie has done after her surgery is find out if your doctor has taken a lot of money from a company. And that can make you more suspicious, but it doesn't tell you whether the doctor is any good or not. So, to me, the problem is it is not that all medical devices should go through a PMA process. I am not saying that. What I am saying is if you have an implanted medical device, doesn't it make sense to do a clinical trial first, to test it on a human being? And when we look at the high number of recalls, if you look at moderate risk as well as high-risk recalls--we didn't look at the low-risk recalls--how many of them there are of 510(k) products, as well as PMA products. But you expect high-risk recalls for a PMA because those are high-risk devices. If 510(k) devices are supposed to be moderate and low risk, they shouldn't be killing people. So if you hold devices to a higher standard of having clinical trials beforehand and inspections, whether the FDA has the authority to do it or not, they haven't done it. And the tradition has been not to do it. And if your law doesn't require it, if it says ``may'' instead of ``shall,'' everybody in this room knows what that means. So you have to have a standard that is high enough to protect patients. And yes, that will slow things down, but it would also have slowed down what happened to Katie. Had that hip been subject to clinical trials, most likely they could have done the blood tests and found out about the problem prior to putting it on the market. At the very least, if not prior, then more quickly after it went on the market. So studies, clinical trials, either beforehand or as a condition of approval are the most critical issue. I don't think postmarket should take the place of premarket. I think you have to have the studies premarket for anything that is in the human body or life-sustaining or lifesaving, but then also have protections afterwards. The Chairman. Thank you. Senator Corker. Senator Corker. Thank you, Mr. Chairman. Just to follow on with that line of thinking, Mr. Hall, if you look at the situation Katie just talked about and Dr. Zuckerman just discussed, should there be testing of that type? Or what was it, in the case of Katie, that caused this particular issue to be a problem? Mr. Hall. Senator, I am not conversant with all the details of the ASR situation. So I can't comment specifically on that. What I can say is that, from the data that I have seen, and I think it is consistent across the board, quality systems, QSRs, quality system regulation, is the key way to have the greatest positive impact on device safety as compared to other things. And in our data, 90 percent of all recalls were because of quality system. And it is important to understand that quality systems are not just manufacturing. It is total product lifecycle. It begins with design, design input, design validation, bench testing, manufacturing, postmarket surveillance, et cetera. So, hopefully, quality system requirements would be the best way to identify these issues. Senator Corker. The two of you, I know that you all are on different ends of the spectrum. Your numbers are quite different. I mean, you are at 98 and 99.5. And you are at 60 or 80. Since, obviously, I would say that Dr. Zuckerman is challenging your numbers, would you want to respond to that? I mean, it is a pretty vast difference. We are not talking about a percent or two. Mr. Hall. Sure. Let me make a couple of comments. When you look at the differences in the study, there are several key differences. First of all, we looked at the reason for the recall, and the study that Ms. Zuckerman referenced did not. We think that is critical because many recalls, the majority have nothing to do with the premarket system. And so, to use premarket, to analyze the premarket system using recalls that have nothing to do with the premarket system creates a results that has little validity. Secondly, the study, our study used a denominator. Theirs did not. I think what you heard from the GAO is that the ratio of PMA to 510(k) devices is 1-to-10 or 1-to-9. The study, both of the studies--and interestingly, we start with the same dataset, around 112, 113. You have a 4-to-1 ratio approximately of 510(k) recalls, all cause, compared to PMA. That is not surprising, given the 9-to-1 ratio that we start with. Next, we also do not consider that the recall classification should be linked to the approval classification. Those are two separate questions. For example, you can have a very low-risk device that because of the particular issue has a very high risk to it. And finally, if you look at the study that they reference, it contains a number of incorrect, inaccurate statements about the 510(k) and the PMA status and the law. What our study attempted to do was to look at the relevant data, recalls for premarket reasons, looking at Class I high safety issues, and with that then try to understand how the system is operating. Dr. Zuckerman. Yes, thank you---- Senator Corker. Is there any validity in the argument he just put forth? Dr. Zuckerman. Sure. I would like to correct a couple of things he said. I used your denominator Mr. Hall. Using your same denominator of 20,000 and using the same numerator--sorry to get into this technical stuff--of recalls. You didn't look just at the recalls that were premarket due to design issues. You looked at all the recalls that were high-risk recalls. The difference in the statistics, the huge difference between 99 percent and 60 percent or 80 percent has to do with whether you count the moderate-risk recalls. You looked only at high-risk recalls and you say that any device that was submitted to the FDA--not even approved, but submitted--is your denominator, and your numerator is only the high-risk ones. If you are assuming that if it wasn't a high-risk recall, it is safe, then you get 99 percent. But if you consider that a moderate-risk recall also means a product is not safe because, as in the case of Katie's hip, that is a moderate-risk recall. There were over 170 knees and hips and joint components recalls, involving hundreds of thousands of devices in the last 5 years that are all moderate- risk recalls, but all require additional surgery or rehab, or have other problems. If you count those moderate risk recalls, then it goes down to 60 percent if you use the numbers we used for recalls, or to 82 percent if you use GAO's numbers. We respect GAO's numbers. Ours differ because we looked at specific models, model numbers, and the GAO combined model numbers of the same device. So there are different legitimate ways to look at it. I am saying that I don't think that a device is safe just because it is not subject to a high-risk recall. A moderate-risk recall can cost $35,000 and a lot of pain to fix. Senator Corker. Dr. Maisel, and it is interesting, it seems that you have a patient here on the panel. You have a sort of more trial bar orientation on the panel. You have sort of the device orientation on the panel. And nobody is particularly happy with the FDA. And I don't know whether you consider that to be success--you know, a lot of times here if everybody is mad at you, you have kind of hit the sweet spot--or whether that is tremendous failure. I wonder if you could discuss that because, candidly, I don't know of anybody that is particularly happy with the FDA. And I am wondering if you are seeking anything from us to change that or if you might respond to the fact that I don't think anybody on this panel is really thrilled with you guys. Dr. Maisel. Well, Senator, thank you, first of all, for the opportunity to be here today and to comment. And I would like to personally thank Ms. Korgaokar for taking the time to be here and for her compelling story. I personally have practiced medicine for 19 years and sat in rooms with patients who, unfortunately, had recalled medical cardiac devices that also sometimes require surgery to remove. So I am very familiar with what patients experience and the challenges that physicians experience when trying to help their patients. We conducted a very thorough programmatic review over the last 18 months, and we have identified areas that we think need improvement. We would like to deliver more consistency and transparency in our decision-making. We would like to strengthen our science-based decision-making, and we have outlined a number of actions that we have already started taking to strengthen the program. I think one critical factor here is that we believe that smart and focused changes are appropriate. For example, one area is focusing on the Class III 510(k) devices that have already been identified by the GAO and that we are actively working on and have committed to either reclassifying or calling for PMAs. In Dr. Zuckerman's study, 13 of the 80 recalls that she highlights are in that group. So we certainly recognize that there are some focused areas we need to evaluate and strengthen. I am not going to get into the war of numbers to my right over here, other than to say as part of the IOM committee evaluation that is underway, there was detailed FDA data presented that was based on all of the recalls, not just one class or another, and showed a 510(k) recall rate of approximately 1 to 1.5 percent per year. So, from an agency standpoint, I think we find that the most reliable data. And that is publicly available, or we would be happy to provide that analysis for you. I do think that a number of the challenges we face in postmarket monitoring have been outlined here, and there are some unique issues with devices that are different than drugs that are worth mentioning. Number one, it is sometimes very difficult to even know whether an adverse event is due to the device or due to the surgical procedure that was used to implant the device. Now in the case of the hips, that wasn't the issue. But sometimes, based on some of the data we get, it is not so clear whether the device is malfunctioning or whether it is a complication of a medical procedure. Oftentimes, the adverse event reports we get are cryptic and don't contain enough information. Sometimes we don't even know what device or what model of device has caused the problem. And so, we think that the changes we are implementing with electronic medical device reporting of adverse events and with the unique device identifier system will really revolutionize the way that we can perform postmarket surveillance. With regard to hips in particular, we have also undertaken efforts to form an international consortium of orthopedic registries. And in fact, in the Federal Register today is the notice for a meeting that is occurring next month where representatives of more than a dozen orthopedic registries from around the world, including from the UK, Australia, and other countries, come together so that we can make a better system for monitoring these important products. And other efforts will be underway as well. Senator Corker. I know we have other folks that have questions. I have a number of other questions. I thank all of you for your testimony. The Chairman. Thanks, Senator Corker. Senator Blumenthal. Senator Blumenthal. Thank you very much, Mr. Chairman. I want to thank Senator Kohl for having this hearing today on this critically important topic and Senator Corker for your leadership as well. You know, let me just state very bluntly, my time is limited, and I want to ask some additional questions as well. But my experience as a State law enforcer for 20 years leads me to conclude, particularly my interaction with patients like Katie Korgaokar--and thank you for your courage in being here today--that this system simply isn't working. It is inadequate. It is broken, needs to be fixed. And I thank Dr. Maisel for your recognition, the agency's recognition that the system right now is not performing acceptably to protect people from unacceptable levels of risk and injury. I am reminded of the statement that a minor procedure in surgery is something done to somebody else's body. And a minor risk of severe injury, when we are talking about these kinds of devices, is something that happens to somebody else. So I think there are a range of areas that really need very close scrutiny and action. I mean action now, immediately--not postponed to the future--that have to do with the need for clinical trials more often, more thoroughly. Instead of the expedited 510(k) procedures when it is currently used, the need for more robust postmarket surveillance and quicker action so that the doctor who may have believed in good faith that Katie's device worked and would not cause the kinds of metals released into her system that happened can be warned about it more quickly and can be compelled--through proper incentives, liability, if necessary; heightened penalties--to stop using that kind of device. And let me just ask Dr. Maisel whether the FDA is prepared to expedite the kinds of improvements that you have been discussing here today and what can be done to expedite them and whether there needs to be action from the Congress to expedite them? Dr. Maisel. Well, I thank the Senator for your question. We have exerted a considerable amount of our resources and manpower over the last 18 months to evaluate the program because we recognize how important it is to the American public and their health. We are expediting a number of efforts. We outlined 25 actions we are taking in 2011 that will be completed in 2011. These aren't actions that we are talking about over the next 5 years or 10 years. These are things we are doing right now to improve device safety for the American public. They include things like issuing guidance on what type of changes to devices require clinical data. They include things like training our staff and industry so that the quality of the submissions we get and the quality of the reviews can improve. We are taking actions in the postmarket surveillance setting as well. So in answer to your question, I would say we are expediting a number of these changes. Now other changes admittedly take time, such as the implementation of the unique device identifier. We are issuing a final rule this year. We have been talking with industry and stakeholders about the implementation of that because it is a sea change in how we will conduct business. And so, it will be implemented in phases, focusing first on the highest-risk devices. So, again, in answer to your question, we are expediting the changes to the program that are necessary. Senator Blumenthal. And what can we do to encourage those kind of changes so that there is a consistency and a steadfastness in implementing them and so that they are even accelerated? Dr. Maisel. Well, I think, in all seriousness, you took a very good step this week in passing a budget for FY 2011 or the continuing resolution. Senator Blumenthal. Do you need more staff? Is that the problem? You know, by the way, when I say the system isn't working, I am not talking about the people who work with you and for you, because the system is not of their making. But I am wondering whether more resources are the problem? Dr. Maisel. Well, the number of device submissions that we have to evaluate has increased, and the complexity of devices has increased. And we are a strained organization. We certainly appreciate the funding, and we are in negotiations for reauthorization of the Medical Device User Fee Act that will be coming before Congress in Fiscal Year 2012, and through that process, we will certainly make clear what our needs are so that we can have the strongest possible organization. Senator Blumenthal. Thank you very much. I thank everyone here for your testimony. My time has expired. I am hoping to stay for another round of questionings. Thank you, Mr. Chairman. The Chairman. Thank you very much, Mr. Blumenthal. Senator Ayotte. Senator Ayotte. Thank you, Mr. Chairman. Dr. Maisel, I just wanted to follow up. You had mentioned an Institute of Medicine study on the safety of the 510(k) process and looked at all classes of recalls. Before you joined the FDA, did you participate or assist in that study? Dr. Maisel. I was commissioned by the Institute of Medicine prior to my joining FDA to conduct a study on recalls for the 510(k) program. Senator Ayotte. So that Institute of Medicine study which you looked at that came up with an overall range of 1 to 1.5 percent in terms of the recall rate, is that one you have confidence in? Dr. Maisel. I have confidence in that study, yes. Senator Ayotte. First, I'd like to address questions both to Dr. Nexon and Dr. Maisel. There was a study that I am familiar with that was done called the Makower study which found that the United States is at risk of losing its global leadership position in medical technology innovation. The study found that the unpredictability and inefficiencies of the U.S. regulatory process are making it difficult for companies to get life-changing medical products into the hands of clinicians and patients. On the other side, as Senator Blumenthal mentioned, there is the piece of ensuring safety, but also getting these products that can save lives in the hands of patients in an appropriately expedited fashion. One of the issues I raised in my opening statement is that some studies that have, are saying that, on average, devices are available to United States citizens two full years later than patients in other countries. So I guess I would direct my question to both of you, really to Dr. Nexon. What can we do to improve the regulatory processes and increase patient safety at the same time to be competitive with other countries? I would hate to have us be in a position where we cede our global leadership in this area or deny patients access to technology that could be lifesaving. Dr. Nexon. Well, thank you very much for your question, Senator. I think there are a couple of steps that need to be taken. FDA has identified a number of them themselves in their review of the 510(k) process and their new science reports. There needs to be better training of reviewers. The study revealed that large proportions of reviewers didn't have understanding of the basic regulatory terms. There needs to be greater guidance and consistency for industry so that when industry submits a product for approval, it knows what the data standards are and then doesn't find out after the submission is in that they had to redo the trial because they didn't get clear guidance in advance of what FDA expected. There needs to be better management at FDA just to enforce consistency of review and that their speed of review--the FDA recently did an analysis where they found out that one of the greatest sources of delays in PMA products, getting PMA products approved, was a situation where the reviewer would change in the middle of the review, particularly if the lead medical reviewer went on vacation. You know, that is a management issue to schedule vacations better or to see that there needs to be specific attention to cases where those things occur. There is a huge problem in terms of the IDEs, the investigational device exemptions, which you need to get before you can ever begin a clinical trial that involves human subjects. And it takes an inordinate amount of time to get those approved. Sometimes it is a matter of years before you can even start the clinical trial, six months or more to get a meeting with FDA to discuss the nature of the trial. So I think that there are a number of steps that FDA needs to take to really make the process work better for companies and for the agency. I think this will help the agency as well if there is more consistency and better management of reviews. I don't think that there are fundamental changes that need to be made in sort of the legal structure or the requirements for different types of devices. I think those are pretty well set out, and it is a matter of applying them consistently and using good judgment when a device comes in for review. And where there are problem areas identified, and there have been. Dr. Maisel, I think, alluded to--or Professor Hall alluded to AEDs and infusion pumps. They found specific problems from their reporting system, and they instituted new, very clear requirements for those products. Now whether the industry agreed with all those requirements or not, it is a case where the FDA saw a problem, took action, and they did it in a way so that industry knew what was expected of them for the future. Senator Ayotte. Dr. Maisel, I would appreciate your comment on this. The other follow-up would have for both of you is, in looking at the comparisons with European approval versus the United States, is there an issue in terms of discrepancy in safety that we should be looking at? Safety is obviously important to consider as well. Dr. Maisel. Yes. So the Makower study that you referred to surveyed a very small percentage of the medical device industry. They got about 200 respondents out of a device industry that includes more than 10,000 individual companies. So we have to understand that this is a very biased, small representative study. There was another study put out by the California Health Institute that looked at the review times for the U.S. compared to the European community. And for the 510(k) program, which is 90 percent of the devices that are reviewed in the U.S., the U.S. was faster and the device got to market sooner for the low-risk devices. It was about the same for the medium-risk devices. And for the high-risk devices, the EU was faster than the U.S. So we need to understand what the issues are and what the timing is, and it is I think not accurate to say that every device gets to the EU market more quickly. I think the hip example is a great example because there were actually two hips that were recalled by DePuy. Both were on the market in Europe. Only one of them was on the market in the U.S. And so, the ``delay'' in getting products to market in the U.S. is not necessarily a bad thing for products that aren't performing well, if we are asking for more rigorous data to support their approval. Senator Ayotte. I just wanted to add, obviously, I haven't done a scientific study, but just in speaking to many companies, particularly startup companies, large and small, I've been getting similar feedback in terms of concerns about where they are going to locate their companies and where they are going to develop new products. And so, that is where I come from in asking those questions. Dr. Maisel. And I think it is a great point, and we have, earlier this year, announced our innovation initiative, which is a comprehensive program to try to promote device development and innovation in this country, by strengthening the research infrastructure within the United States, identifying clinical trial centers that are particularly expert in medical device development. And we certainly recognize the importance of that as well. Senator Ayotte. Dr. Nexon, you had a comment? Dr. Nexon. Yes, if I could just add a couple of things. I mean, the Makower study has come in for a lot of criticism from FDA. It was really a pretty large sample of companies. Two hundred small companies is a lot of companies reporting on almost very similar experiences. It is also only one of three studies that has looked at this issue. There was a study at PricewaterhouseCoopers that used a different sample, primarily a large company sample, that found that the U.S. ranked seventh out of nine countries in the speed of regulatory approval. And then there was also the California Health Institute study, which was just mentioned, which did find a substantial lag for the more complex devices and more innovative devices which are really the ones that are greatest issue for competition. So I think there is a big problem. It is also the case that there was a study by the Boston Consulting Group, which was the only systematic study I know of the relative safety of the two systems, and found that the recall, incidence of recalls was about the same in Europe and the United States. Didn't seem to be much difference. Now we are certainly not advocating for a European system of review. As Jeff Shuren, the head of the center, said, there is no inherent reason why the U.S. system has to be slower than the European system. And what the California Health Institute study showed that I think it was six years ago, on average, it took a year longer to get a product to patients than Europe. Now it takes four years longer. We ought to be able to do better than that. And I can tell you my own experience when I am telling you this is not systematic, but it is from talking to lots of companies and lots of particularly of venture capitalists who invest in small companies that the problems at FDA are a huge deterrent. I had one venture capitalist tell me that he was a fellow who has got investments in seven or eight small device companies. He used to take a case where he had an engineer, a doctor, and an idea, and he would be able to put money so they could bring that idea to fruition into products that would benefit patients. Now his investors, which are often big pension funds, won't allow him to invest in any company that hasn't already got an FDA approval because the uncertainties of the approval process are so great. And that is not a system we can sustain if we are going to maintain American leadership. Senator Ayotte. I would add to Senator Blumenthal's question to you, Dr. Maisel, obviously to ask the committee how you think that we can help by taking action and to improve the process. And I would follow up to ask you, Dr. Nexon, do you have any thoughts in terms of whether there is a legislative fix that is needed? Dr. Maisel. Well, again, as I stated earlier, I think we are an increasingly busy center with an increasing number of applications and increasing complexity of devices. We have certainly committed to strengthening our scientific evaluation of these products, and the continued support from Congress for our program, as you have done, is certainly welcome. Senator Ayotte. Do you have anything to add, Dr. Nexon? Dr. Nexon. Yes, I think the fundamental legislative structure is pretty sound. So I don't think additional legislation is required. I do think, as Dr. Maisel has pointed out, you need to maintain at least stable funding for the FDA, even in this time of tight budgets, if they are to meet these challenges. And I think that the key really is the kind of attention that this committee and other members of Congress show to the FDA is important really to give it a priority. We were very heartened by the President's op-ed on the importance of streamlining regulations, and I think he even mentioned in the State of the Union the device industry as one area where FDA needed to do well if the United States was to remain competitive. And I think those kinds of comments and that kind of attention is very helpful for the industry, and I think it is helpful for FDA to show that their work is valued. Senator Ayotte. Thank you both, and thank you all for coming to testify today. Appreciate the insight that you have given this committee. The Chairman. Thank you, Senator Ayotte. Senator Wyden. Senator Wyden. Thank you, Mr. Chairman. And without making this a bouquet-tossing contest, let me just tell you how much I appreciate particularly your tenacity in being willing to stay at these issues, and this is an important hearing. Dr. Nexon, let me start with you. The longer that I am involved in the issues of public policy and healthcare, the more convinced I am that transparency and getting good information out to the public is one of the most important steps we can take as public officials. In terms of creating choice and competition and holding costs down, it is one of the best steps we can take. For example, recently Senator Grassley and I introduced legislation that would allow, after 30 years, the opening up of the Medicare database so as to get information to the public about various claims and patterns. And as you know, there have been some extraordinarily abusive practices, and we have worked with the Center for Public Integrity, and Wall Street Journal has done yeoman reporting on this. I want to ask you about how it relates to another matter, and it was triggered in my mind by a letter that the Group Purchasing Association wrote recently. And essentially, what they are concerned about, their assertion is the drug manufacturers enter into relationships with--excuse me, device manufacturers enter into relationships with doctors. These relationships are protected through what amount to gag clauses, contractual confidentiality agreements, and this prevents hospitals, according to them, from disclosing the price they pay for a device. And their assertion is that, when you have these gag clauses, you go right to the heart of what I am talking about. There is no price transparency, and people aren't going to be able to look at the cost of various medical devices. And third- party groups can't find out. Patients can't find out. It is a very vexing problem. So my question to you is--and you can tell me what you think of the Group Purchasing Association--what would you think about the idea of opening up and releasing price data on purchasing agreements to the public? It is Government money. There is Government money involved here. Senator Grassley makes the point, colleagues, that I think is really the ballgame. Senator Grassley says people know about its farm payments. They know about defense contracting payments. He says we have got to find out this claims information. So tell me what you think about the idea of industry opening up and releasing price data on purchasing agreements. Dr. Nexon. Well, we are generally in favor of transparency. We are strongly in favor of releasing quality data to the American people. We think the FDA should be more transparent. We supported Senator Kohl's Physician Payment Sunshine Act because we think that was good for the public and good for the industry. I will say, however, we are strongly opposed to releasing pricing data, and let me tell you why. Because it has to---- Senator Wyden. So your position, though, is everybody else ought to have their data released, but you all wouldn't---- Dr. Nexon. Well, no, the fact is--the sad fact is, Senator, that, when you are talking about commercial transactions between institutional buyers, there are often confidentiality clauses. It is not unique at all to the device industry. Auto manufacturer sells a car to a dealer, you know, what the prices and the discounts he provides are not generally available to the public. And that is true with many large transactions. It is important to remember that the Government in the Medicare program--it is not true in something like the VA--and the public do not buy medical devices directly. Medical devices are bought largely by hospitals, large institutional purchasers, and then, when a patient goes to the hospital, he pays a price for a procedure which includes in some sense the cost of that device. But it is not that he is buying the device directly or necessarily that the price he pays has anything to do with the price the hospital negotiates for that device. As a patient, I want to know what I have to pay. I am not concerned with what the hospital pays for electricity or gasoline or some other component of the procedure. Now the question is if we release that price data, would it have a positive effect for the public or not? And the fact is that the current arrangements, which involve negotiations between relatively sophisticated buyers and relatively sophisticated sellers, have created an extremely competitive industry. There has been a study by Guy King, the former chief actuary of the Medicare program, of prices in the medical device industry. And what he found was that, over an 18-year period, our prices have gone up one-quarter as fast as the typical medical price indexes, so one-quarter as fast as everything else in the healthcare sector. And we have gone up half as fast even as the general CPI, which, as you know, has been quite low in recent years. So we have a pretty good record of keeping prices low through competition under this negotiation between informed buyers and informed sellers. There have also been studies, a study that was done by Bob Hahn and another--Bob Hahn is a regulatory specialist. And there is concern that if the prices were released not only would it inhibit our ability to enter negotiations, but it might end up resulting in actually higher prices paid across the board because of antitrust issues. Senator Wyden. I can tell you certainly with the example you gave of automobile companies and manufacturers, you are talking about private sector money. Here, despite the kind of chain of purchasing you have described, there is a lot of Medicare money. I have other questions I want to ask, but my sense is that the Group Purchasing Association at least warrants our looking at these confidentiality agreements. These are gag clauses, and they prevent hospitals from disclosing the price that they pay for a device. I think that is right at the heart of it, and I think it warrants some further attention. One question for you if I might, Dr. Maisel. What is your sense about the FDA review process and making it more transparent as you go forward with striking the balance between safety and speedy approval? Dr. Maisel. Well, as you know, FDA is very interested in providing transparent information to the American public, and we have an ongoing transparency initiative. And that carries over to the Center for Devices, where we have posted a variety of documents and provided access to public data increasingly over the last years. For example, as I alluded to earlier, there is now a public Web site where you can go and type in a device type and find out about all the recalls and adverse events that have been submitted for that type of device. We are bound because we do deal with confidential commercial information. So there are some limitations on the type of information that we can provide to the public. But we are certainly interested in providing decisional information as much as possible and have done so. Senator Wyden. All right. Thank you. Thank you, Mr. Chairman. The Chairman. Thanks, Senator Wyden. Senator Bill Nelson. Senator Nelson. Thank you, Mr. Chairman. I want to ask you two gentlemen, Dr. Maisel and Dr. Nexon, if you would comment on the tension between safety and the need to innovate new technologies. This industry is real big in my State, and I would like to get your two perspectives. Dr. Maisel. Dr. Maisel. We often talk about it being a tension, but it doesn't have to be a tension. A good device evaluation for an innovative product promotes safety. There can be innovative devices that improve safety. So there is a tension in the sense that longer evaluation of devices that requires more data has the potential to slow down getting an innovative product to patients. And if that product would improve public health, then taking a longer time actually has a net negative impact on the public health. So that is the tension. The tension is striking the right balance in our risk analysis so that we can get a product to market to help patients in the right time. Senator Nelson. Dr. Nexon, you are sitting on the other side and---- Dr. Nexon. Well, I actually agree with Dr. Maisel. I think there is a balance to be struck. I think the balance in the law, which Professor Hall mentioned, a reasonable assurance of safety and effectiveness is a reasonable standard. Device manufacturers should be held to a high standard of safety. They should be able, before a device goes on the market, to present the data that gives a reasonable assurance that their devices will be safe and effective. The problem is that sometimes that can be interpreted in a way that makes the bar so high that products that can save lives or improve health don't get to market because test after test is required. But we have no disagreement with the general approach that FDA takes. What we want is consistency, rapidity, ability to get answers, and reasonable standards, and I think those are goals that FDA and the industry share. And in the public, too. The patients as well. Senator Nelson. Do you think there are undue delays? Dr. Nexon. Pardon me? Senator Nelson. Do you think there are undue delays in the approval? Dr. Nexon. Yes. Senator Nelson. Amplify. Dr. Nexon. Well, as I think before you came in, I mean, what we have seen is a very severe deterioration in FDA performance over the last five years, and performance was not super before that. The time it takes in terms of elapsed time, not time on the FDA clock. The time, a recent study by the California Health Institute showed that the time it takes to get a 510(k) product approved has increased 45 percent since 2007, and the time it gets to get a PMA product approved has increased a whopping 75 percent. And that is from a base that was really not that fast to begin with. And beyond the actual approval times, particularly on these more complex devices, we are finding a terrible difficulty. Our companies are finding terrible difficulty in getting in to see FDA so they can even agree on a protocol so they can do the clinical studies necessary to support an application. I have been around this industry for many, many years, first with Senator Kennedy and then in my current capacity. And I have never--in talking to the companies, I have never seen the degree of angst and upset that we have right now. You always have a certain amount of griping between the regulated industry and the regulators. But it is really immense right now, and I think that FDA recognizes the problem and is working hard to do something about it. But it really does need to be fixed. Senator Nelson. Is there earlier testimony on the record as to the increased cost as a result of these delays? Dr. Nexon. We don't have a solid cost estimate of the change. The closest thing we have got is the Makower study, which we would be happy to submit for the record, that tries to do some estimates of the cost of the additional time that FDA takes, imposes on companies. But there are some--it is a difficult question to answer in terms of cost. Senator Nelson. Dr. Maisel. Dr. Maisel. Well, I guess I would take issue with the characterization of our performance as a ``severe deterioration'' because the numbers simply don't support that. We have continued to meet 95 percent of our MDUFA goals, meeting the time that we have agreed to and industry has agreed to for our device evaluations. As I mentioned earlier, 90 percent of the time we review 510(k) applications within 90 days, 98 percent of the time within 150 days. Our PMA Tier 1 MDUFA goals, we have met. And so, I agree that the total time to market has increased. FDA's evaluation time has continued to meet its performance goals. And so, what that speaks to is partially a quality issue. The quality of applications that we receive is sometimes substandard, and that takes time for industry to respond to requests from FDA staff to complete an application appropriately. There is no question that, for some of the devices, the complexity has increased. And, undoubtedly, that contributes as well. Dr. Nexon. Well, I think Dr. Maisel made a good point, which is that there is a difference for time on the FDA clock, which is where the current goals are set, which is the time an application is in the hands of the FDA and it has not been sent back to the manufacturer to answer additional questions or provide additional data. The clock stops when that occurs. From the point of view of the manufacturer, the point of time on the FDA clock isn't really important. It is the time between when you submit the product and the time you get it to market. Now, obviously, FDA often has legitimate questions. But the fact that the total time has risen so dramatically over this time period indicates to me that FDA is being much less consistent in the things it asks manufacturers. I do believe that the quality--certainly the quality--of our applications could be improved in many cases, but I don't believe that the quality of our applications has deteriorated 75 percent since 2007. Senator Nelson. Thank you, Mr. Chairman. The Chairman. Go ahead. Dr. Zuckerman. Yes, thank you. I just want to say that I think it is a problem when we talk about performance only in terms of speed of getting something to market. And I have criticized FDA, but I want to defend what CDRH has been doing lately. I think they have done a better job of requiring better data. And Senator Nelson, I happen to know that you have some constituents in the audience today who have been harmed by medical devices, and in the same way that you have constituents who make medical devices in your State, you have a lot of patients who use them. So I think, when we talk about performance, and I am sure you will agree, we need to talk not just the speed of getting things to market, but making sure they are safe when they get there. Senator Nelson. And is their testimony being recorded in some way through some of you all, Ms. Zuckerman? Dr. Zuckerman. I am sorry. I don't understand the question. Senator Nelson. You spoke of people in the audience who have been harmed by these devices. Dr. Zuckerman. Yes. Senator Nelson. Has their matter been presented in some of the testimony here? Dr. Zuckerman. It hasn't been presented as testimony, but I am happy to provide it for the record. Senator Nelson. Please. Dr. Zuckerman. I am very happy to do that. Thank you. Senator Nelson. Thank you. The Chairman. Senator Blumenthal, will you have another comment or question? Senator Blumenthal. I do. Thank you, Mr. Chairman. In fact, I have a whole--I have a ton of questions and interest in areas that I think really need scrutiny. In particular, let me name a few, and I am going to follow up after this hearing with this panel. And each of you has added very importantly to our knowledge and really just want to thank every one of you for being here. But going back to the doctor who treated Katie, and I don't mean him in particular, I mean the doctors who use these devices. To what extent are, number one, relationships, financial relationships, consulting relationships an important factor for us to consider in decisions by that doctor to use a device that at some point either is of doubtful value, in his view, or questionable value or is simply of equal value. In other words, to what extent do the financial incentives, sometimes hidden, sometimes not so hidden, factor? And second, off-label marketing clearly a problem. What do we do about it? So those are two areas I am going to sort of invite your observations on them, and I apologize for sort of tossing a big question at the end of the hearing, two big questions. Dr. Zuckerman. I could just say that some of the companies, some of the largest companies, including Johnson & Johnson, which makes the DePuy implant, have been penalized by the Justice Department for kickbacks. Kickbacks are kickbacks. Sometimes it is unclear whether funding is a consulting fee or a kickback. But in this case, they were found guilty of kickbacks. So that is something. I also had a hip replacement. I also have a DePuy hip. I am happy to say not the same kind. Mine hasn't been recalled, yet. But I was able to look up my doctor, thanks to the Sunshine Act, and I was able to find that my doctor did not get any money, at least listed, from the company. But one of the problems is there are legitimate fees that can be provided and there are kickbacks, and there is a lot in between. But we know from research, and there is a lot of good research on this, that, when doctors have consulting relationships and financial relationships with companies that make the product that they prescribe, they are more likely to prescribe them, sometimes to the detriment of patients. So the Justice Department has actually been doing a very good job of going after this in the last few years, more so than previously. But there is that gray in-between area where doctors can get research funds, or consulting fees, that may be legitimate. We know that speaker fees are very often just disguised ways of providing support for doctors who will then like your company and prescribe your products. Senator Blumenthal. Dr. Resnic. Dr. Resnic. I think this is a really critical issue that you bring up and gets to sort of the fundamental question of sort of the necessary trust in the physician-patient relationship. And I work in interventional cardiology, which is heavily device oriented, and it is a significant problem I think in ways that Katie, our patient who testified earlier, described. She doesn't know if the relationship between her doctor and the manufacturer in any way impaired or affected the judgment of the doctor to use the device. But he probably doesn't either. At best, he doesn't know whether it affects. At worst, he knows and doesn't admit that it might. And I think that this is something that the professional societies in each of the specialties needs to address in concordance with the legislative efforts and programs like the Sunshine Act. I do think, as a patient advocate, I would not want to find out that my family member or myself treated by a doctor, I would wonder whether their decision-making was some way impaired. Having said that, I think we have to be careful to not throw the baby out with the bath water completely, and there are important relationships, I think, that device innovation requires the clinical feedback from practitioners. But these should be very transparent and out for patients to see as well. And my institution and the medical school where I work require this, such that we do need to tell our patients about any relationships that we may have, and I think that that is probably what needs to evolve. But it is a sort of ugly underbelly of medicine is these potential relationships. Senator Blumenthal. Yes? Mr. Hall. You also asked a question about off-label use, which is a very interesting and complex question. In many situations, off-label use is actually the standard of care and what any patient would want. And, in fact, Congress has recognized that by explicitly talking about the legality of off-label use of medical devices. And this also raises questions of transparency and patient benefit when often the manufacturer has the most information because the company is in receipt of information from patients, from studies, whatever, and you have this perfectly legal and often very appropriate use taking place in the field for patient benefit. And how do you allow the transmission of information on clinical use, risk, benefits, whatever, when the use is standard of care, but off-label? Senator Blumenthal. I appreciate your comment, Mr. Hall. But actually, I think my reference was to off-label marketing. Off-label use is perfectly legal and may be appropriate in the view of the treating physician. Off-label marketing is against the law, and for good reason. Mr. Hall. Correct. What I was trying to point out, perhaps not articulately enough, is that there is this interesting balance between what is marketing and what is providing important clinical, scientific information for the benefit of the patient and the physician in that use. Senator Blumenthal. Right. Mr. Hall. And that is what I was trying to reference. Senator Blumenthal. Mr. Nexon. Dr. Nexon. The issue of consulting is a very complex one in the device area because the development and improvement of device is so intertwined with medical practice. Many, if not most, devices are initially invented by physicians so that there are obviously royalty arrangements. All companies, because there is this--devices typically have an 18- to 24-month lifecycle, and then an improved version comes along, and that improved version is based on feedback from practicing physicians. So there are a lot of legitimate consulting and royalty arrangements. AdvaMed has put forward what I think is a very rigorous code of ethics, which we would be happy to share with you, that lists what we think is permissible payments and what is impermissible. And, of course, we were proud to support Senator Kohl's Sunshine Act, which provided for full disclosure of any payment, whether legitimate or illegitimate, to physicians. But it is a difficult problem. On off-label use, as you said, off-label promotion is illegal, and companies shouldn't do it. Senator Blumenthal. And again, I want to thank all of you for your testimony and come back to the comment that Dr. Resnic made. Full disclosure, transparency are very important, and your hospital may require it. I am not sure whether Massachusetts law also requires it. But in many instances, the law fails to provide for--in my view at least--fails to provide for adequate and full disclosure. So the physician knows in advance that that hip implant is being used by a physician who has some relationship. It may be a speaker's fee. It may be consulting. It may be royalties. But one way or the other, the patient deserves to know, I think. Dr. Resnic. I agree. I think Massachusetts did enact in 2009---- Senator Blumenthal. Right. Dr. Resnic [continuing]. One of the most stringent public disclosure requirements, as well as prohibition of certain relationships between industry and physicians, both for pharmaceutical device, any medical product. And then within those stringent guidelines, there are certainly institutions that have had their share of challenges and that have moved beyond even the restrictions that Massachusetts has imposed. There is, in fact, there is always some sort of pendulum or balance in the equation. The one thing that I am concerned about with ever-increasing stringency of relationships, which I think is not a good thing between physicians and industry, is the potential loss for education and even participation by those physicians in the appropriate feedback of clinical insight to medical device manufacturers. It is just a hard balance. We talked at the beginning of the meeting about the critical balance that FDA needs to strike between safety and innovation. These types of questions also need to strike a balance. Clearly, transparency is paramount, but through transparency, if it is unbalanced, that is, if it is only Massachusetts that stands alone, then device manufacturers tend to move elsewhere. And I think that perhaps there needs to be more national recommendations regarding these relationships and transparency, as Mr. Kohl's Sunshine Act has recommended and implemented. Senator Blumenthal. Thank you. Thank you, Mr. Chairman. The Chairman. Thank you very much, Senator Blumenthal. Thank you so much for being here today. And this has been a great panel. You have given us excellent testimony from several different points of view, which is extremely helpful. We all agree that the FDA must make patient safety a number-one priority, but also we want to do that without stifling innovation. And I think we all believe that we can find a balance. That is what we are here to do. We are encouraged by the numerous initiatives that FDA is implementing for more effective medical device approval and postmarket surveillance. However, we are still concerned that the agency's oversight of medical products remains on the GAO's high-risk list more than two years now after earning that infamous designation, and that is not acceptable. We intend to keep a close eye on how FDA changes the fast- track approval process. We will also be monitoring improvements that have been promised by the agency and the industry to better track devices and speed the removal of defective or failed devices from the market. We are particularly concerned about high-risk devices being fast-tracked. FDA has had over 20 years to tackle these high- risk devices. As we have seen with the Johnson & Johnson hip implant today, it is past time to protect patient safety and correctly classify these devices. I also believe that the FDA needs to develop a more robust postmarket surveillance program and improve its management of recalls. We thank you all for being here today. We look forward to continuing this dialogue in the public interest. Thank you so much for coming. 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