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OEM trade groups may be seeking to expand definition of 'remanufacturing' quickly and quietly

March 23, 2022
HTM Parts And Service


There are other implications, including the impact of this legislation, if approved, on the FDA proposed rulemaking involving 21 CFR 820 and ISO 13485. Three weeks ago, the FDA published in the Federal Register its intention to amend the current good manufacturing practice requirements and included an invitation for comment on the FDA proposed regulation.

But apparently some are not willing to await public comment and consideration of the about-to-be-published FDA Guidance as well as the above-referenced new FDA regulation — preferring instead to ask Congress to intercede. This legislation may be sending another message which has implications for industry competition. As former EP Radiological Services Inc. president and CEO, Richard Flannery commented, “FDA regulatory changes should be, first and foremost, about patient safety.”
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Expanding the definition of 'remanufacturing' without justification
Notably, under this trade association proposed legislation, the definition of "remanufacturer" includes activities undertaken by a person other than the manufacturer that "could" change the performance, safety specifications, or intended use of the equipment. A long list of possible "remanufacturing" activities would include replacement parts and module compatibility, cybersecurity, software, use of non-conforming parts and bypassing access protections or technological protection measures. All of this would possibly be considered to be "remanufacturing" if this legislation is allowed to proceed.

ECRI Vice President Emeritus Mark Bruley, whose substantial ECRI analysis was relied upon in the 2018 FDA Servicing Report to Congress noted that regulatory changes in the FDA area “should be evidence-based”. Nothing in the proposed legislation details why the legislation is necessary in light of the FDA initiatives or how these denoted activities bear any relation to the current concept of "remanufacturing" — which requires a “significant” change to a device or system.

Indeed, the legislation would drop the requirement of "significant" changes from the existing FDA definition altogether. This may be seen by a review of the existing FDA Remanufacturing Regulation definition found at 21 CFR 820.3(w). It provides that a remanufacturer “is any person who processes, conditions, renovates, repackages, restores or does any other act done to a finished device that significantly changes the finished device’s performance or safety specifications, or intended use.”

“How does one evaluate when a non-significant activity falls within the rubric of this proposed legislation?" said IAMERS president Diana Upton. "I am concerned that the net effect on the healthcare system might well be to reduce the availability of refurbished equipment and/or increase the cost, with limited to no potential benefit for patient safety.”
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Wayne Webster

"What we have here is a failure to communicate."

March 25, 2022 10:03

I won't proclaim for a minute to be fully informed as to what the OEM's are doing or why they are going after the ISO's with such fervor. I guess the obvious answer is they wish to create a monopoly and somehow maintain their anonymity by doing this through a public trade association, MITA. We all know who belongs to this association. It's no secret. What amazes me is how the OEM's by making this move are shooting themselves in the foot. They, the OEM's, use the ISO's for installations and removals of equipment, for service and service training. When they take over an institution's equipment service, the OEM frequently uses the ISO for multivendor service expertise. They use them for parts and for sale of equipment. The ISO's are the ones who purchase the equipment the OEM's are taking in trade. It appears, "What we have here is a failure to communicate." When will those needing the services of the ISO's within the OEM organizations wake up and speak up? Leave the patient safety and regulation where it belongs with the FDA. Learn how to coexist with the ISO's and at some point recognize by eliminating ISO's you effectively eliminate a necessary resource for new equipment sales, trade-ins, parts and service.

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Wayne Moore

Mr. Kerwin and Bill H.R. 7253

March 30, 2022 10:04

Wrong again Mr. Kerwin, Bill H.R.7253 introduced yesterday does not change or expand the FDA's definition of remanufacturing at all. In the future you may want to actually read a Bill prior to writing an OpEd about it.

17 ‘‘(B) Remanufacturing of any finished device by engaging in any act that could significantly change the performance or safety specifications, or intended use, of the finished device,

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Steven Ford

Amen, Wayne!

March 30, 2022 10:05

You are spot-on that patient safety should be the guiding principle for regulation. The present system permits far too much power in the hands of large OEMs who have very little accountability to the public. We frequently see equipment operating outside manufacturer's specifications that's been exclusively maintained by the OEM. If not for independent organizations in healthy competition with the OEMs, how is the public to be safeguarded? Via clinical inspection by the FDA, for which no mechanism exist? Via accrediotation agencies, who have serious problems of their own?
Policy changes should move in the direction of increased access by independent service providers, not less. We don't accept this near-monopoly in car repairs, which certainly impacts public safety, so why is it acceptable in medical devices?

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