[Senate Hearing 107-73] [From the U.S. Government Publishing Office] S. Hrg. 107-73 TISSUE BANKS: IS THE FEDERAL GOVERNMENT'S OVERSIGHT ADEQUATE? ======================================================================= HEARING before the PERMANENT SUBCOMMITTEE ON INVESTIGATIONS of the COMMITTEE ON GOVERNMENTAL AFFAIRS UNITED STATES SENATE ONE HUNDRED SEVENTH CONGRESS FIRST SESSION __________ MAY 24, 2001 __________ Printed for the use of the Committee on Governmental Affairs __________ U.S. GOVERNMENT PRINTING OFFICE 73-395 WASHINGTON : 2001 _______________________________________________________________________ For sale by the Superintendent of Documents, Congressional Sales Office U.S. Government Printing Office, Washington, DC 20402 COMMITTEE ON GOVERNMENTAL AFFAIRS FRED THOMPSON, Tennessee, Chairman JOSEPH I. LIEBERMAN, Connecticut, Ranking Democrat TED STEVENS, Alaska CARL LEVIN, Michigan SUSAN M. COLLINS, Maine DANIEL K. AKAKA, Hawaii GEORGE V. VOINOVICH, Ohio RICHARD J. DURBIN, Illinois PETE V. DOMENICI, New Mexico ROBERT G. TORRICELLI, New Jersey THAD COCHRAN, Mississippi MAX CLELAND, Georgia JUDD GREGG, New Hampshire THOMAS R. CARPER, Delaware ROBERT F. BENNETT, Utah JEAN CARNAHAN, Missouri Hannah S. Sistare, Staff Director and Counsel Joyce A. Rechtschaffen, Democratic Staff Director and Counsel Darla D. Cassell, Chief Clerk ------ PERMANENT SUBCOMMITTEE ON INVESTIGATIONS SUSAN M. COLLINS, Maine, Chairman CARL LEVIN, Michigan, Ranking Democrat TED STEVENS, Alaska DANIEL K. AKAKA, Hawaii GEORGE V. VOINOVICH, Ohio RICHARD J. DURBIN, Illinois PETE V. DOMENICI, New Mexico ROBERT G. TORRICELLI, New Jersey THAD COCHRAN, Mississippi MAX CLELAND, Georgia JUDD GREGG, New Hampshire THOMAS R. CARPER, Delaware ROBERT F. BENNETT, Utah JEAN CARNAHAN, Missouri Christopher A. Ford, Chief Counsel and Staff Director Linda J. Gustitus, Democratic Chief Counsel and Staff Director Claire Barnard, Investigator Mary D. Robertson, Chief Clerk C O N T E N T S ------ Page Opening statements: Senator Collins.............................................. 1 Senator Levin................................................ 3 Senator Durbin............................................... 5 WITNESSES Thursday, May 24, 2001 George F. Grob, Deputy Inspector General for Evaluation and Inspections, Office of the Inspector General, U.S. Department of Health and Human Services, Washington, DC................... 9 P. Robert Rigney, Jr., Chief Executive Officer, American Association of Tissue Banks, Washington, DC.................... 24 William F. Minogue, M.D., Chairman of the Board of Directors, Washington Regional Transplant Consortium, Washington, DC...... 27 Valerie J. Rao, M.D., Chief Medical Examiner, District Five, Leesburg, Florida.............................................. 30 Kathryn C. Zoon, Ph.D., Director, Center for Biologics Evaluation and Research, U.S. Food and Drug Administration, Washington, DC 40 Alphabetical List of Witnesses Grob, George F.: Testimony.................................................... 9 Prepared statement........................................... 49 Minogue, William F., M.D.: Testimony.................................................... 27 Prepared statement........................................... 74 Rao, Valerie J., M.D.: Testimony.................................................... 30 Prepared statement........................................... 82 Rigney, P. Robert, Jr.: Testimony.................................................... 24 Prepared statement........................................... 58 Zoon, Kathryn C., Ph.D.: Testimony.................................................... 40 Prepared statement........................................... 84 Exhibit List 1. G``Warning Letter'' from the U.S. Food and Drug Administration to Lions Club of District 22-C, Eye and Tissue Bank and Research Foundation, Inc. (Seabrook, Maryland), dated August 25, 2000, regarding improper alteration of records...... 110 2. G``Warning Letter'' from the U.S. Food and Drug Administration to Pacific Coast Tissue Bank (Los Angeles, California), dated April 21, 2000, regarding inadequate written procedures and improperly maintained records................... 112 3. a. GLetter from elderly gentleman to Dr. Valerie Rao, District Five Medical Examiner's Office, Leesburg, Florida, dated March 26, 2001, expressing interest in and concerns about donating his body.............................................. 114 b. GResponse letter from Dr. Valerie J. Rao, Lake County Medical Examiner's Office, Leesburg, Florida, to elderly gentleman, dated May 2, 2001, responding to his concerns... 115 4. GWashington Regional Transplant Consortium (WRTC) Donor Referral/Tissue Donor Worksheet for an 82-year-old man with prostate cancer, indicating his unsuitability as a potential donor.......................................................... 116 5. GLions Eye and Tissue Bank of District 22-C Donor Medical and Social History Questionnaire, indicating the Lions' awareness of the potential donor's prostate cancer....................... 118 6. GE-mail from John Gaston to an organ procurement organization, dated May 16, 2001, soliciting customers for his new tissue recovery company.................................... 119 7. GLetter from the Food and Drug Administration to Regeneration Technology, Inc. (RTI), dated May 3, 2001, raising questions about the safety of ``pooling''................................ 120 8. GPermanent Subcommittee on Investigations Staff Background Memorandum, ``Tissue Banks: Is The Federal Government's Oversight Adequate?''.......................................... 123 9. GReport of the Department of Health and Human Services, Office of Inspector General, ``Informed Consent in Tissue Donation: Expectations and Realities,'' January 2001, OEI-01- 00-00440....................................................... 135 10. GReport of the Department of Health and Human Services, Office of Inspector General, ``Oversight of Tissue Banking,'' January 2001, OEI-01-00-00441.................................. 166 11. a. G``Special Investigation: The Body Brokers'' (5-part series of articles), The Orange County Register, April 16-20, 2001........................................................... 189 b. G``Cadavers For Cash In Texas: `People Make A Lot Of Money Selling Tissue,' '' Chicago Tribune, May 22, 2000.......... 220 12. GLetter from Senator Richard J. Durbin, dated January 9, 2001, to Dr. Jane Henney, Commissioner, Food and Drug Administration, regarding regulations of tissue for transplantation and new FDA rules for tissue banks............. 222 13. GStatement for the record of the College of American Pathologists................................................... 224 14. GStatement for the record of the North American Transplant Coordinators Organization...................................... 226 15. GStatement for the record of the Southeast Tissue Alliance, Inc............................................................ 232 16. GStatement for the record of Regeneration Technologies, Inc.. 235 17. GLetter from Regeneration Technologies, Inc, dated June 4, 2001, to Dr. Valerie J. Rao, Lake County Medical Examiner, regarding Rao's testimony before the Permanent Subcommittee on Investigations on May 24, 2001................................. 245 18. GLetter from Dr. Valerie J. Rao, District Five (Lake County) Medical Examiner's Office, dated June 7, 2001, to Regeneration Technologies, Inc., responding to Regeneration Technologies, Inc. June 4, 2001, letter (above).............................. 249 19. GLetter from American Association of Tissue Banks (AATB), dated July 15, 2001, to the Permanent Subcommittee on Investigations, responding to Senator Collin's inquiry on number of tissue banks operating after rejection for accreditation or after being expelled or departed from AATB.... 251 20. GStatement for the record of Lions of District 22-C Eye and Tissue Bank and Research Foundation, Inc. received by the Permanent Subcommittee on Investigtions on August 9, 2001...... 253 TISSUE BANKS: IS THE FEDERAL GOVERNMENT'S OVERSIGHT ADEQUATE? ---------- THURSDAY, MAY 24, 2001 U.S. Senate, Permanent Subcommittee on Investigations, of the Committee on Governmental Affairs, Washington, DC. The Subcommittee met, pursuant to notice, at 9:30 a.m., in room SD-342, Dirksen Senate Office Building, Hon. Susan Collins, Chairman of the Subcommittee, presiding. Present: Senators Collins, Levin, and Durbin. Staff Present: Christopher A. Ford, Chief Counsel and Staff Director; Mary D. Robertson, Chief Clerk; Claire Barnard, Investigator; Eileen M. Fisher, Investigator; Barbara Cohoon, Staff Assistant; Linda Gustitus, Democratic Chief Counsel and Staff Director; Laura Stuber, Democratic Counsel to the Minority; Jennett Rona (Senator Lieberman); Anne Marie Murphy and Elissa Levin (Senator Durbin). OPENING STATEMENT OF SENATOR COLLINS Senator Collins. The Subcommittee will come to order. Good morning. Today, the Permanent Subcommittee on Investigations is holding an oversight hearing to examine the practices of the tissue industry and the adequacy of the regulatory framework that governs this industry. This hearing will also look at procedures for obtaining the informed consent of families who contemplate the donation of a loved one's tissue. Senator Richard Durbin of Illinois was the first to recommend that the Subcommittee investigate these important issues. While most people are familiar with the concept of organ donation, tissue donation is not very well understood by most Americans. Yet the tissue industry is very diverse and growing rapidly. The recovery and medical use of tissue, including skin, bone, cartilage, tendons, ligaments, and heart valves, are increasingly common and can play an essential role in improving the quality of recipients' lives. Tissue donation is also on the rise. In 1994, an estimated 6,000 individuals donated tissue. By 1999, however, this figure had increased more than three-fold to approximately 20,000. Donors now make possible as many as 750,000 tissue transplants every year in the United States. Nevertheless, the industry that carries out these tasks has received little public scrutiny. The organizations that make up the tissue industry are collectively referred to as tissue banks. Some are engaged in tissue recovery, while others process, store, and distribute human tissue. Some tissue banks are nonprofits, while others are for-profit companies. Unlike organ transplants, human tissue is not usually transplanted ``as is'' from the donor's body into that of the recipient. Rather, donated tissue frequently undergoes considerable processing before it can be used. Bone from a donor's femur, for example, may be completely reshaped into a component designed to give support to a recipient's spine. Technology that greatly reduces the risk of rejection now allows surgeons to use actual bone in their patients rather than metal or other synthetic substances. In addition, donated tissue, once it is reshaped, can frequently be stored for an extended period of time, unlike organs, which must be transplanted into the recipient's body within hours of their recovery. Tissue donation can improve the lives of many Americans. Just one donor, in fact, can help a large number of people in various ways. Skin donations, for instance, can be used to help heal burn victims or aid in reconstructive surgical procedures. Ligaments and tendons can be used to repair worn-out knees. Bone donations can be used in hip replacements or spinal surgery, enabling recipients to regain mobility. Donated arteries and veins can restore circulation, and heart valves can be transplanted to save lives. With the phenomenal growth and the new uses for tissue transplants have come some problems. Just over a year ago, the Orange County Register ran a series of articles on the tissue industry.\1\ Several of these articles brought to light incidents in which tissue obtained from unsuitable donors entered the American tissue supply, raising questions about the adequacy of Federal regulation. Other concerns have been raised about whether the practices of some tissue banks are sufficient to reduce the danger of spreading such illnesses as the human variant of ``mad cow disease.'' --------------------------------------------------------------------------- \1\ See Exhibit No. 11.a. which appears in the Appendix on page 189. --------------------------------------------------------------------------- Because communicable diseases such as HIV and hepatitis, among others, can also be transmitted through tissues, it is vital that tissues be tested effectively and that potential donors be properly screened for suitability. It is equally important to ensure that persons and organizations involved in the tissue industry follow good tissue handling and processing practices in order to prevent contamination, and that the industry employ sound tracking procedures so that if a problem develops, all of the affected tissue recipients can be promptly notified. Toward this end, the Federal Food and Drug Administration has proposed new rules that would extend the FDA's oversight role in the areas of donor screening, tissue testing, and good tissue practices. The FDA's current rules focus on screening potential donors for suitability, testing tissue, and keeping proper records detailing the screening process. The FDA verifies such records through periodic inspections of tissue banks. In addition, the FDA has begun to implement a new rule requiring the registration of all tissue banks. Although the FDA has inspected only 118 tissue banks since 1993, we have recently learned that at least 350 tissue banks of various types have now registered with the FDA. These statistics suggest that many tissue banks may have been operating with little or no Federal oversight. The tissue bank industry would not exist without the generous individuals who decide to donate tissue from the bodies of their loved ones. Of particular concern to me, therefore, is whether or not accurate and appropriate information is provided to the families of potential donors during what is always a very difficult time. Only with adequate information can families make the right choice for them. Potential donor families want to be assured that their loved ones' tissues will be used to help others. They also expect that their loved ones' bodies will be respected throughout the tissue recovery process and that the tissue will be treated with the dignity and respect reflecting the generous gift that it is. The process by which tissue banks obtain consent, unfortunately, has not always worked well. For example, a tissue recovery technician in Arizona removed a deceased donor's leg bone without obtaining consent and then falsified the records to cover it up. While this may be an extreme case, there are other troubling examples of inadequate information being provided to donor families. As a lucrative tissue market has developed with medical breakthroughs making possible new ways to use tissue, competition for tissue has increased dramatically. By some accounts, a single donor can yield more than $200,000 in revenue to tissue banks. Tissue banks make this money not by selling human tissue, which is illegal, but by charging processing fees to the recipients of this material. Some tissue banks have charged others with making misrepresentations and with concealing information from potential donor families. In response to these concerns about safety, oversight, and consent, last year, my Subcommittee colleague, Senator Durbin, and I asked Health and Human Services Secretary Donna Shalala to undertake a review of the tissue industry. Today, we will hear from the HHS Office of Inspector General about the results of that investigation. This morning's hearing will examine many complex issues related to the tissue bank industry and to the adequacy of current and proposed regulatory oversight. We will hear from representatives of the FDA and a private accreditation organization working to ensure the safety of our tissue supply. We will also hear from experts who have firsthand knowledge of tissue banks and their operations. Finally, we will discuss ways to improve the tissue bank industry so that tissue recipients can have confidence that the tissue supply is safe and donor families can be assured that their concerns are respected. I look forward to the testimony of all of our witnesses today and to learning more about this very important issue. I would now like to recognize my colleague, Senator Levin, for any opening remarks that he might have. OPENING STATEMENT OF SENATOR LEVIN Senator Levin. Madam Chairman, thank you. Today's hearing will address a sensitive and important subject: Human tissue banking and the regulation, or the lack of regulation, of the tissue bank industry. First, I want to thank Chairman Collins and Senator Durbin for their leadership in this area. We are here today because of their initiative and I think the Nation is in their debt because of it. Human tissue is an important resource for medical treatment. It is used, for example, for reconstructive surgery, cancer care, cornea transplants, burn treatment, and heart valve replacement. Recent strides in medical technology have expanded the use and value of human tissue, and as the demand for human tissue increases, we must ensure that appropriate safeguards are in place for humane and safe handling. Today's hearing will address some of the problems that have arisen in the tissue bank industry, which has been subject to only limited regulation. The lack of regulation is surprising to me, since organ donation is significantly regulated and since both organ donation and tissue banks involve the handling of human bodies. Moreover, unlike entities involved in organ donation, which are non-profit, tissue bank recoverers use for-profit tissue processing companies to process the human tissue. There are reports that some of the non-profit tissue banks may be receiving money from the for-profit processing companies in order to get exclusive rights to the tissue from a particular tissue bank. The last thing we want is a bidding war for human tissue. Apparently, the processing of the tissue and the development of the technology for the processing of the tissue requires for- profit participation, or at least it has done so up to now, and the result is a tension between the concerns about the appropriate treatment of human tissue and the for-profit incentives of the companies involved. To date, the FDA has not directly addressed this potential problem. A number of other disturbing stories involving tissue banks have been reported in the press recently. One witness testifying today, the medical examiner for Lake County, Florida, said she cut ties to a non-profit tissue bank with ties to a for-profit company in Florida because she was disturbed by the financial issues and the way the bank's technicians treated donors' bodies. Concerns have been raised over the possible transmission of communicable diseases through tissue banks. Some news reports have indicated that human tissue with CJD, or what we call ``mad cow disease,'' imported into this country from Germany, was transplanted into U.S. patients in the early 1990's. In another instance, after a 19-year-old Arizona woman died in a car crash, the family agreed to donate body parts to a tissue bank but expressly refused to authorize bone removal. The tissue bank admitted in court records to altering documents, making it appear as if consent to take bone from the woman had been given. The bones were returned after a 2-year legal fight, and her father said the following: ``Instead of having some closure after her death, it just became an unending saga. It was like she was dying over and over again.'' The Los Angeles County Coroner's Office was found to be giving away or selling hundreds of organs and tissue from accident and homicide victims. The body parts were sent to researchers without ever seeking the consent of the families. As a result, in September 2000, California enacted legislation which bans county coroners from giving researchers body parts from accident and homicide victims without family permission. The FDA has reacted by proposing two new rules governing tissue banks, one which mandates increased disease screening and testing for tissue donors, and one which requires that tissue banks follow a good tissue practice standard. The FDA also finalized a rule in January of this year which requires the registration of all tissue banks. Prior to that registration rule, which was initially proposed in 1998 and was not finalized until this year, we had no idea how many tissue banks existed. I am hopeful that the FDA will expedite the two proposed rules so that it will not take as long as the registration rule, and today one of the questions we are going to ask is: Why has it taken the FDA so long? My own State of Michigan appears to have a good system in place that could serve as a model for the rest of the Nation. Instead of competing tissue banks in our State, Michigan has one federally-designated Organ Procurement Organization, the Gift of Life Agency, which also recovers tissue. The non-profit Gift of Life Agency is affiliated with the non-profit Michigan Eye Bank, which recovers only eye tissue, so that these entities work together and do not compete with each other. In many States, there are numerous tissue banks which end up competing for human tissue, and it seems to me that this is a source of a problem. I think we should be looking at ways to encourage States to move towards the Michigan model. One thing this hearing should not do, and must not do, is discourage people in any way from becoming tissue and organ donors. Organ and tissue donors provide the most important gift in the world to their recipients--the Gift of Life. A half- million people or more each year rely on tissue transplants. A few unscrupulous tissue bank businesses should not be allowed to harm a life-giving and a life-improving medical therapy. Today's hearing can show us how appropriate regulation can inspire confidence in the public, and hopefully inspire more people to offer life-preserving tissue and organs after their own deaths. Again, I want to commend our Chairman and also Senator Durbin, whose leadership in this area has brought us to this point today and hopefully will lead to some additional advances in this important area. Senator Collins. Thank you, Senator Levin. I am now pleased to call upon Senator Durbin. As I mentioned in my opening statement, it is in large measure through his interest in the oversight of the tissue industry that the Subcommittee has begun its investigation in this area, so Senator Durbin, I am pleased you can join us. OPENING STATEMENT OF SENATOR DURBIN Senator Durbin. Thank you very much. I want to thank Senator Collins. When I raised this issue with her, she was immediately interested in it and looked into it and shared my belief that this is something that we need to address in Washington. Her staff has done an excellent job putting together the hearing on this topic today. I am concerned about the safety and the ethical oversight of the tissue donation system. It should be of interest to every single one of us. Last year, 6,000 people died while waiting for an organ donation. There are over 75,000 on a waiting list for possible life-saving organ transplants. While 6,000 people donated organs, another 20,000 tissue donations were obtained. The public and donor families do not usually differentiate between the two. They expect that both donations will serve a medical or a medical research purpose and will enhance, or in the case of organ donations, possibly even save, a recipient's life. My attention to this issue was called by a series in the Chicago Tribune, and then I read subsequent to that a series in the Orange County Register. In each case, they outlined some very serious policy concerns. I am going to submit my entire statement for the record, but I want to make this point as clear as I can. A decade ago, the tissue industry's revenues were $20 million a year. By 2003, they are expected to reach $1 billion. I think we have a special responsibility in Washington, when it comes to setting down rules, to make sure that there are no abuses in this industry. I cannot even express strongly enough my concern if we undermine the integrity of organ and tissue donation by not accepting our Federal responsibility. People need to understand that when they are making these selfless gifts, that they are not doing it for a commercial purpose unless they expressly make that decision, and to do otherwise is, I am afraid, to discourage exactly what we should encourage, namely organ donations. I hope that the results of these hearings and some of the things that are brought forward will help us reach some changes in policy. I was happy last year when this first came up to call in then-Secretary Shalala and she agreed to take a look at this issue as quickly as possible. It was a bipartisan request. This should be a bipartisan issue. I do not think there is a Democratic or Republican approach to this. Any single one of us, Independents alike, could end up needing a tissue or organ donation and we have to make certain that we have policies that serve this country. I want to thank again the Chairman of this Subcommittee for her response to this issue. It is going to be something, I think, of great value in years to come. Thank you. Senator Collins. Thank you, Senator Durbin. [The prepared opening statement of Senator Durbin follows:] PREPARED OPENING STATEMENT OF SENATOR DURBIN I want to start by thanking my colleague, Senator Collins and her staff for putting together a hearing on this topic today. Both the safety and ethical oversight of the tissue donation system is clearly of great interest to many including myself. It is essential that the public have faith in the integrity of this system. Last year more than 6,000 people died while waiting for an organ donation and there are more than 75,000 on a waiting list for a possibly life-saving organ transplant. While 6,000 people donated organs, another 20,000 tissue donations were obtained. The public and donor families do not generally differentiate between organ and tissue donation. They expect that both donations will serve a medical or medical research purpose and will enhance, or in the case of organ donations, possibly save a recipient's life. My interest in the tissue industry originally stemmed from some news articles I read last year in the Chicago Tribune. The articles show the ever increasing commercialization of the tissue industry. What for donor families is an altruistic ``Gift of Life'' has become for others a multimillion dollar business. A decade ago, the tissue industry's revenues were $20 million a year. By 2003, they are expected to reach $1 billion. While it is illegal under Federal law to buy or sell either an organ or tissue for transplantation and it is illegal to buy or sell fetal tissue for any purpose, a tissue bank or processor may make a profit on ancillary services such as transportation, processing, etc. The Chicago Tribune and The Orange County Register reported that the tissue from one body could yield up to $230,000 in revenue for a company. Because of the profitability of tissue, a fierce competition has broken out between companies seeking access to donated tissue. Some of the methods used to, in essence, steer donations to a given tissue company, I believe, make many of us very uneasy. For instance, according to the Chicago Tribune, the head of the University of Wisconsin Hospitals, Robert Hoffmann, was found to have been paid by a company called Allograft, a tissue bank that Hoffmann helped create and that received donated tissue from the university hospital. In 1996, Hoffmann arranged to have the tissue harvested from hospital patients delivered to the American Red Cross. In return, the Red Cross paid him personally for those services. Two years later, several Red Cross employees, aided by Hoffmann, set up their own non-profit tissue bank, Allograft Resources. The hospital's donated tissue was then sent to Allograft rather than the Red Cross and Hoffmann continued to receive a fee. When this information was made public, Hoffmann eventually agreed to pay his $86,000 in fees to the university for ``organ donation education.'' Other examples reported in the media tell of medical examiners receiving large sums of money in exchange for directing donations to a particular tissue business. For example, a second Chicago Tribune article reported that a Texas medical examiner was receiving $47,000 a year from tissue banks and his assistants also received $50 from the tissue bank each time they obtained a family's consent to harvest tissue. These payments basically are like ``bounty payments.'' While donor families believe, in general, that the donations will go to medically necessary transplantation, the profitability of cosmetic uses is often higher and so a significant quantity of tissue is instead being processed for cosmetic uses such as lip enhancement, penile implants and face lifts. Donor families do not generally receive an opportunity to direct the donation to medically necessary uses including reconstructive uses, rather than cosmetic uses. At the same time, both the Chicago Tribune and The Orange County Register suggest that there have been shortages of skin for burn victims. In fact, the American Association of Tissue Banks and the American Burn Association surveyed their members involved in burn repair and found that shortages do exist, with surgeons sometimes having to delay surgery or to modify it to accommodate a smaller tissue sample. While we have, as a Nation, an allocation system for organs based on medical necessity, we have no similar system for tissue distribution. Likewise, we require that all organs be procured by non-profit Organ Procurement Organizations and we also require them to have representatives of transplant centers, voluntary health associations, and the general public on their board of directors. No such requirement exists for tissue procurers. As the Inspector General will, I believe, talk about in his testimony, tissue donation is often solicited by phone and the requesters tend to be far less trained than those used by Organ Procurement Organizations. Donor families often do not receive much information about the uses that the donation will be put to, nor do they receive information about the companies who will be getting the tissue and the financial arrangements of those companies. This lack of transparency, can undermine the public trust. Donated tissue can provide a fantastic therapeutic value to patients, whether it be for repairing burns, or for reconstructing those who have been injured or who have congenital problems. Many in the industry work extremely hard to ensure that they meet the highest standards. The American Association for Tissue Banks has a voluntary accreditation process that sets a high standard and it has also developed in collaboration with the Eye Bank Association of America and the Association of Organ Procurement Organizations, a model for appropriate informed consent. Unfortunately, only 40 percent of the tissue banks or processors are members of AATB. Many of the largest for-profit companies choose not to be members. In fact, FDA does not even know who all the companies are that are involved with tissue processing. FDA clearly cannot be inspecting those whose existence they are unaware of. When FDA has done inspections, in some instances, it has found very serious deficiencies in the areas of screening for diseases such as HIV and Hepatitis. It seems likely that those who are not inspected may well also have similar deficiencies. All of these problems led me to invite the previous Secretary of HHS to meet with me and several other Senators last year. Secretary Shalala met with Senators Wyden, Santorum, and me. After that meeting, the Secretary directed the Inspector General to perform the two investigations that the IG is discussing today. Those meetings also led the Secretary to direct the FDA to speed up the implementation of its new regulations. One regulation requires all tissue companies to register with the FDA and to list the types of products that they process. This will allow the FDA finally to be in a position to inspect all facilities with some regularity. The other rules that are in varying degrees of implementation will require increased scrutiny regarding donor suitability and, for the first time, ``good manufacturing practices.'' All of these new rules cost money. Currently, the FDA has been using money from other programs to pay for these new rules. It seems unwise to be robbing one good program to pay for another. Therefore, I asked FDA in January to provide me with budget details regarding how much money will be needed to implement these new rules. It is now late May and I still have not received an answer. It is difficult to help the agency get the resources it needs if it does not respond in a timely manner. I agree with the Inspector General's recommendations that FDA needs to move forward more aggressively to inspect all facilities and to establish a regular inspection process. I also have been concerned with the issue of prion diseases and have been working in the food safety area to minimize the likelihood of transmission of ``mad cow disease'' and the human counterpart, vCJD. Similar issues arise in the tissue field. Twelve years ago, Japan had a terrible problem with the transmission of CJD due to the mixing or pooling of tissue samples. This led AATB to prohibit pooling or batching for its members. Given that there is no known effective manner to deactivate prions, I am glad to see that the new FDA rules prohibit pooling or batching. Clearly mixing tissue samples from multiple donors significantly increases the risk of disease transmission. Since tissue transplantation is generally not done in a medically urgent setting and is life-enhancing rather than life-saving, it is very important that it not put a patient at additional risk for a horrible and ultimately lethal disease such as CJD. The only reason to batch-process tissue is to save money by using economies of scale. There is no therapeutic value to batch processing. I hope the FDA will remain firmly opposed to pooling or batch- processing and will not get pressured by any company looking at its bottom line into sacrificing human health and safety. The issues involved in this area are very complex but it is now abundantly clear that business as usual is undermining the public's trust in the donation system. We need to move forward quickly to develop solutions to restore that trust. This hearing should provide a good start for the Subcommittee to examine the issue and get input from those familiar with the tissue industry, so that we can make improvements in the upcoming weeks. I want to thank again, my colleague, Senator Collins, for arranging this hearing and starting this very important dialogue. Our offices are currently working on legislation to encourage organ donation and I hope that we will also work together to craft solutions to improve the tissue system. Senator Collins. I would like to inform all of our witnesses that we will be using a timing system today. Your complete written statements will be placed in the hearing record. You will be given 10 minutes for your initial presentation and there will be a light system. When the light turns to orange, you have only 1 minute to sum up. I would now like to call upon our first witness this morning, who is George Grob. He serves as the Deputy Inspector General for Evaluation and Inspections of the Office of Inspector General within the Department of Health and Human Services. Mr. Grob has been with the Office of Inspector General since 1988 and he will testify regarding the findings in the Inspector General's reports on the tissue industry, which are entitled, ``Oversight of Tissue Banking and Informed Consent in Tissue Donation.'' \1\ We are very pleased to have you with us this morning. We look forward to your testimony. --------------------------------------------------------------------------- \1\ See Exhibits No. 9 and 10 which appear in the Appendix on pages 135 and 166 respectively. --------------------------------------------------------------------------- Pursuant to Rule 6, all witnesses who testify are required to be sworn in, so at this time, I would ask that you stand to take the oath. Do you swear that the testimony you are about to give to the Subcommittee will be the truth, the whole truth, and nothing but the truth, so help you, God? Mr. Grob. I do. Senator Collins. Thank you. TESTIMONY OF GEORGE F. GROB,\2\ DEPUTY INSPECTOR GENERAL FOR EVALUATION AND INSPECTIONS, OFFICE OF THE INSPECTOR GENERAL, U.S. DEPARTMENT OF HEALTH AND HUMAN SERVICES, WASHINGTON, DC Mr. Grob. Good morning, Madam Chairman and Senators Levin and Durbin. It is a pleasure to be here, and I must begin my remarks by saying that the opening remarks of all the Members have covered all the ground that I was going to speak to today in a very thorough way, so if you do not mind, I will repeat to emphasize some of the points that you made and keep my remarks short, hoping that we can cover more ground in the questions and answers, which then may be more penetrating. --------------------------------------------------------------------------- \2\ The prepared statement of Mr. Grob appears in the Appendix on page 49. --------------------------------------------------------------------------- Human tissue in the form of skin, bone, heart valves, eyes, cells, and the like, is an important source of treatment, benefitting thousands of Americans every year. For example, donated skin can save the lives of burn victims. Donated bone can replace cancerous bone and be used in knee and hip replacements and for spinal surgery. As noted by the Chairman, there has been a very rapid growth in this industry, which is fortunate. The availability of these tissues is increasing year by year. But there are other changes underway, as well. Processing has become more sophisticated and tissue is being put to new uses. At the same time, the field is becoming more entrepreneurial. For-profit firms are increasingly entering an arena that was once dominated by nonprofit agencies. I wish to emphasize that I do not intend this last remark to be taken negatively. In fact, this may account for and contribute positively to the development of new products and treatments. However, as promising as these new trends are, the standards of practice have not kept pace with the growth and development of the industry. As a result, some donor families have been confused and disappointed by the treatment and disposition of the remains of their loved ones, and questions have been raised about the quality, safety, and supply of human tissue. When these issues emerged last year, Secretary Shalala asked the Office of Inspector General to examine the oversight mechanisms and the processes whereby donors and their families are approached for donation. We issued two reports in January, and I believe you all have copies. At the time of our study, the fall of the year 2000, we found shortcomings in both aspects of the service sector. First, with respect to oversight, the Food and Drug Administration focuses on preventing the transmission of communicable diseases by requiring donor screening and tissue testing. We found that the FDA had designed and was implementing an oversight system that was fundamentally sound. However, due to resource constraints, it was unable to sustain its program. Since 1993, it had inspected 118 banks. During this period, 68 had only been inspected once instead of every 2 years, and we found another 36 that had never been inspected. Late-breaking developments show us that there were perhaps twice as many who were totally unknown, and, in fact, we found that at that time, the number and location of all tissue banks was unknown. Also because of resource limitations, several key regulations which were under development had not been finalized. The American Association of Tissue Banks conducts a voluntary accreditation program. In addition to screening and testing, it addresses operational practices and organizational aspects of tissue banking, including safety, equipment testing, labeling, and quality assurance programs. However, at the time of our study, it had accredited only 58 tissue banks. Another 90 that we knew of at that time were not accredited. Florida and New York are the only two States that inspect tissue banks. Their requirements address a broad range of practices and also require that banks report adverse incidents. However, they only inspect those banks that do business within their jurisdiction. With respect to donor concerns, the expectations and altruistic motives of donors and their families are the foundation of tissue banking. There would be no tissue transplantation without them. Their concerns, then, are vitally important. Their assumptions and desires are that donated tissue will enhance the lives of others; the donor will be respected throughout the process, from recovery to use; the gift will be recognized as coming from donated human tissue; family emotional needs will be respected; the tissue banking industry can be trusted and will act as stewards of the gift. The reality of tissue banking raises some underlying tensions with regard to these assumptions. These arise from the commercialization of the service sector, the appearance of tissue being treated as a commodity, and the use of tissue for cosmetic purposes. The key to meeting the donors' concerns is information and their informed consent, but the circumstances during which the request is made present fundamental obstacles to this. It is the generous gift of these donors that makes it possible, but it occurs within hours of the death of a loved one. We found shortcomings in the oversight of requesters and in the written information provided to families. More importantly, at the time of our study, there were no standards or written principles governing the manner in which the request is made and informed consent obtained. Also, at the beginning of our study, there was no knowledge of the adequacy of supply of tissues, particularly of human skin. Subsequently and during the course of our study, we learned that the supply of skin for burn victims was somewhat tight. Our reports include recommendations to address the shortcomings that we found. During our study and since then, progress was made in addressing them. FDA is now beginning to inspect all known tissue banks. The regulation requiring the registration of banks and their products was issued in January, and since then, identification of a large number of tissue banks previously unknown has occurred. A draft regulation on good tissue handling practices was issued for comment, and comments on a draft regulation on donor suitability and tissue testing are now under review. Both industry groups and donor family groups have issued statements of principles to govern the informed consent process. The American Association of Tissue Banks and the American Burn Association have conducted surveys to determine the adequacy of the supply of skin. In short, progress is being made, but gaps remain. The tissue banking and transplantation industry has moved from its infancy to its adolescence. It is full of promise, but it is experiencing some significant growing pains. I hope our studies will be helpful in getting it through the stage, and I will be happy to answer your questions. Senator Collins. Thank you very much, Mr. Grob. In one of your reports, you noted that at least 36 tissue banks had never been inspected by the FDA, is that correct? Mr. Grob. That is right. Senator Collins. Now, what universe of banks were you dealing with at that point? How many, about 118 or so? Mr. Grob. About 150. Senator Collins. A hundred-and-fifty? Mr. Grob. Yes. Senator Collins. We have recently learned that more than 350 tissue banks have registered with the FDA pursuant to the new regulation. Mr. Grob. Yes. Senator Collins. So what does that suggest when you were looking at 150 tissue banks, which presumably were all the tissue banks that you were able to locate by using various sources, like the FDA, the two States that regulate, is that correct? Mr. Grob. Yes, and a few other States that license them, wherever we could find it. Senator Collins. And you came up with a universe of 150, about. Mr. Grob. Or so, yes. Senator Collins. And yet out of those, you found that there were at least 36 that had never been inspected. Now we find out that there are something like 350---- Mr. Grob. Yes. Senator Collins [continuing]. Tissue banks. Does that not suggest that there are literally scores of tissue banks that have been operating with no Federal oversight whatsoever? Mr. Grob. Or State oversight, or any oversight by the industry accreditation group. And the significance of that, if I could point out, is that when the Food and Drug Administration conducts its inspections, and when the American Association of Tissue Banks conducts its accreditation reviews, they do find problems and some of them are significant. So we have to assume that if they find problems in the banks that they inspect, then there are probably those same problems, if not more of them, in the banks that have never been inspected. Senator Collins. I think that is an excellent point, and that is what troubles me, as well, is that it appears that there are scores of tissue banks that have been operating with no oversight whatsoever, not by the FDA, not by the States, and not by the private accreditation group, and yet in those tissue banks that were known to FDA, there were still problems. It seems to me it is more likely that there will be even greater problems in the ones that no one was really aware of or watching over. Could you tell us about some of the inspections that the FDA has conducted and what they revealed? Mr. Grob. Where they found problems--they found problems in about half of the banks that they reviewed, and some of these were serious problems that required official action. Examples of that might have been cases where contamination had been noted, a bank that might not have been able to successfully recall tissue that needed to be recalled. There might have been some problems where they could not track the tissue back to the source, which, of course, is necessary to ensure that it is safe. And then a couple of cases where we had what you might call repeated testing to come up with the right result. In other words, if the testing is positive---- Senator Collins. Can you explain that? Mr. Grob. The testing might be positive for some contamination. What you might then do is try to keep testing it until the result is negative, and then at that---- Senator Collins. Let me stop you here to make sure I understand. This case, this repeating testing, where the first test of the tissue indicates that there is a problem. Mr. Grob. Yes. Senator Collins. It is contaminated or there is some other disqualifying result that has occurred in the testing. Mr. Grob. Exactly. Senator Collins. So instead of that tissue being discarded and taken out of the tissue supply, are you telling us that what happens is the technician just repeats the test until they get the result that they want? Mr. Grob. Yes, exactly. Senator Collins. That strikes me as an extremely dangerous practice. Mr. Grob. I would think so, yes. Senator Collins. Could you tell us, also, were there cases of tissue banks that failed to assure sterility of the tissue and lacked operating procedures to prevent cross-contamination? Mr. Grob. That is probably true. Now, the Food and Drug Administration's inspections are primarily related right now to the transmission to HIV and hepatitis, and their inspections then would look at such things as whether there are records that enable the tissue bank to be sure that the donor had been properly screened, and then whether there had been proper testing for those diseases, and, of course, for the general handling of the tissues to prevent their further contamination in the tissue bank. So some of those general things that they would have to look at would apply to other diseases, as well, but their look right now is limited only to those two. The good practices regulation, which has recently issued in draft form, would provide additional protection for a variety of ways the tissue is handled and the way the tissue bank is run and things of this nature. So right now, the Food and Drug Administration's inspections are more limited. For example, they are more limited now than the kind of review that is done by the accreditation association or by the States of Florida and New York, which have a broader set of requirements. Now, the requirements of the Food and Drug Administration will catch up with those and probably surpass them in detail when their new regulation is issued in final. Senator Collins. How extensive is the accreditation process by the American Association of Tissue Banks? Mr. Grob. Well, at the time we did the study, I think it was 58 banks that were accredited out of what we now know to be more than 350 tissue banks. Senator Collins. So while those 50 to 75, let us say, because I think it has gone up recently, banks may be held to higher standards---- Mr. Grob. Right. Senator Collins [continuing]. Than even with the FDA standards---- Mr. Grob. Yes, right now. Senator Collins [continuing]. There is still a vast universe of banks that are not accredited by the private organization, is that correct? Mr. Grob. Yes. If we were doing our study today, the finding would have been that we found that FDA had inspected 118 banks but there were 350 total. I mean, the numbers would be very different, because at that time, the numbers were simply not known. The same thing is true for the accreditation. The accreditation is purely voluntary and there are lots of issues about that in the sense that you have to look to the motives of the banks to see if they have any motivation to become accredited. Senator Collins. Should the Federal Government or State Governments be encouraging accreditation by this private organization? Mr. Grob. It is my opinion that there should be an encouragement for accreditation by any suitable accreditor. The American Association of Tissue Banks certainly is doing that. Others could do it as well, or could be formed to do it. But I do think it is important to point out the differences between the FDA review and the accreditation. While they currently do not overlap, they both serve important purposes. For example, the accreditation association cannot do things like force a recall, take action against someone who has not been performing properly, things of this nature. So it does not have that enforcement authority that the FDA has. My own opinion is that some combination of the two is always better than just doing one, and to that extent, then I believe that it should be encouraged. Accreditation is used in many other health care sectors effectively, but I do not think it would be a substitute for the FDA inspection in this case. Senator Collins. I agree with you. You found tissue banks that had been refused accreditation by the American Association of Tissue Banks, is that correct? Mr. Grob. That is correct. Right. Senator Collins. Did anything happen to those banks that were turned down? Was there any sort of referral to FDA? Does FDA place those banks that were denied accreditation under more scrutiny? Mr. Grob. No, I do not think so. I think that--although you might want to check with your FDA witness on that particular point. But as a general rule, the answer to your question is that those banks that are not accredited are free to operate without having to follow any of the rules that they would have had to follow had they been accredited. Senator Collins. So there are no restrictions or they are allowed to engage in the same kind of practices as those that successfully sought and obtained accreditation. Mr. Grob. Right, only if they were violative of the FDA communicable disease standards. Senator Collins. In your judgment, to ensure public safety, how often should the FDA be inspecting a tissue bank? Mr. Grob. I would leave that up to FDA. Now, they have told us and in various places they have suggested every 2 years, which is why I referred to that. Other inspection programs or accreditation programs, if you look at hospitals and home health agencies and nursing homes, range from 1 to 3 years. So 2 years certainly seems to be well within the range of practice in the health industry. Senator Collins. And of the inspections that you found that FDA had done, I think it was 188 inspections of 118 tissue banks---- Mr. Grob. Yes. Senator Collins [continuing]. What kind of time cycle were those banks on? Were they being inspected once every 2 years, or did it vary greatly? Mr. Grob. It varied greatly, and as I said, only 68 had ever been inspected more than once, and that was data that went back to 1993. Senator Collins. Mr. Grob, is there a difference between the informed consent procedures for organ donations versus tissue donations? Mr. Grob. I think in principle, they are very similar, but in practice, there are some significant differences. For organ donation, all the requesting must be done by the organ procurement organizations who do this constantly or by a hospital or other personnel whom they train, whereas in the tissue business, some OPOs may be involved sometime, but in many cases, and probably more commonly, the requesting would be done by representatives of the tissue banking industry or different groups that work for them for this purpose. So the requesting that is done by different groups and the level of training, therefore, would be very, very different and not as consistent in the tissue banking industry at this time. Another difference, I think that is central here, has to do with the circumstances. Generally speaking, for an organ transplant, the patient would have had a close connection to the hospital right before the time of the consent, because, generally speaking, we are talking about a patient who is brain dead and so they are under the close supervision of the hospital. And so as a result of that, the organ procurement organization may have had communication with the family for several days or even a longer period of time before the actual consent is reached, whereas for the tissue patient, that is not limited to brain death. It could be a car accident or something and the family must be approached within hours of the death. I must say that the tissue banking has quite a challenge in this respect, to balance the desire of the family for some privacy or information and the circumstances. Often they, for example, will make the request by telephone instead of at the hospital, and that may be out of the respect for the family, who may want to get back to its home setting before they are asked. So there is not an easy answer to that, but because it has to occur within hours of the death, it makes it difficult, and that also causes some of the difference. Senator Collins. Thank you. My time has expired. Senator Levin. Senator Levin. Thank you, Madam Chairman. The National Organ Transplant Act forbids the selling of organs and tissues. However, the Act does permit a reasonable payment which is associated with the removal, transportation, implantation, processing, preservation, quality control, and storage. Mr. Grob. Yes. Senator Levin. We have heard stories, however, that there have been grants that have been made to some of the tissue banks that do the recovering of the tissue, that some of the profit-making processors that seek that tissue for processing have made some form of grant to some of the tissue banks that have done the recovering, which are usually not-for-profit in theory. Have you also run into those kind of stories? Mr. Grob. This issue of the profit making and the place at which there is a transaction of anything of worth was one of the issues that we struggled with more than any other, and I think I would have to report to you right now that the struggle continues, because I do not think that there is a consensus on exactly what should be done with regard to trying to govern in any way the transactions that occur during this period. So if I may, in this case, what I would prefer to do would just be to share with you some thoughts or ideas that we have talked about among ourselves and that might shed some light on this. Certainly, the intention of that Act was to prevent any individual from offering his or her tissue for sale or for anyone to approach an individual and offer to buy it from them, and in our discussions, there has been almost universal agreement on that point. What happens after that, though, is that the tissue needs to be handled in various ways, and I think that as the Act is written, certainly allows, as you said, for the reasonable payment of almost anything that occurs after that point in the sense that there is a storage or a handling or a transportation that occurs at almost every level there. So really, in terms of the law, the issue turns to the question of what is reasonable. How much is a reasonable amount? In talking to donors, we found that they were not upset, generally speaking, many of them, with the notion that a profit could be made in those middle transactions or that money should be paid, but they certainly did not want excessive profiteering. But there was no way for any of us to get a handle on exactly what is excessive. One could look at the profits that a company makes, but big companies make a lot more profit than small ones do, for example, and it is very difficult to second-guess the cost that a company incurs because of all the overhead that goes into the company's operation. We could think of no practical way to track that. We do not even know where the tissue goes right now. There is not even a way to sort out and track what happens to the tissue. And with the modern tissue banking industry, there are so many new processes coming into play all the time that it is difficult to even define the stages through which the tissue is going. And if one were to try to track it and consider what the price for that would be, any system you put into effect would probably be inaccurate within a few months of your doing it because of the changes that are occurring in the industry. And furthermore, there has been a long tradition of not establishing price limits for most products in the United States, including in the health care industry. So we were unable to come up with any practical way to deal with what I think is a very fundamental concern, and I think Senator Collins referred to this in her opening remarks, about the expectation that the tissue would not be used for commercialization, that it would be donated for the benefit of someone else, a very difficult thing. As far as we were able to take it in our own thinking, the key to it was information. Now, we think that the donors can make up their own minds about what to do, or at least could do that better, if they had more information than they have now, and we believe that information should occur at two times, once when the donation is being requested. The donor at that time may not be interested in those details, but there certainly is nothing wrong with providing written information that could be considered later, or perhaps in some cases it could be considered somewhat in advance if death is imminent. But above and beyond that, a more general form of information to inform the public about the donation process in general and perhaps about the companies involved in particular would be useful, perhaps an annual or periodic statement by these companies indicating their sources of revenue, the uses to which they put the tissue, things of this nature that could be out there, so that as people become more informed about tissue banking and tissue donation, they could look to those documents, much as they look to the annual statements of nonprofit agencies who produce an annual statement of what happens to their funds, and then they can decide whether they want to donate to a particular agency or not. Perhaps a similar thing could be beneficial in this industry, as well. So I am sharing with you a long journey of trying to come to grips with that one. Senator Levin. Well, there is another possibility, and it is what is in place in my home State of Michigan, which is that we have one organ procurement organization, one organ and tissue procurement organization---- Mr. Grob. Yes. Senator Levin [continuing]. So that you do not have competition among different organizations for the tissue. Mr. Grob. Yes. Senator Levin. And it is that competition which then can precipitate grants, however you want to call them, monies going to various nonprofit recovering entities in order to get the tissue into the hands of the people who are making profit here. Now, one thing we could do would be to modify the Federal law, which is to say that there is one organ procurement organization responsible for organ and tissue donation activities per region. Right now, we do that with organs, but not with tissue. Why not do that with tissue and take away some of that competitive activity which exists which could precipitate the commercialization of tissue donation, which is what we want to avoid? Mr. Grob. I think there are lots of possibilities. If I may, I would like to speak as an analyst, so I will give you what I regard as the pros and cons of those kinds of arrangements. This is a difficult policy choice to make. I think I can preface it by saying that, recently, organ procurement organizations have become more visible and active in tissue requesting and recovery than they were in the past. One reason for that seems to be that a couple of years ago, a law was passed that the hospitals must inform the organ procurement organizations of the death of patients in the hospital. The idea was so that they would be more alert to the possibility of organ donation. But what happened was as a result of that was that the organ procurement organizations became more alert for tissue recovery, as well, and as a result, their role in tissue recovery has greatly increased. And so that certainly is very much of a possibility. However, it still is not the case that the organ procurement organizations are the ones who do it all, and if one were to switch over to that right now, then what would happen would be those tissue banks that have been involved, including many who have been involved for many years and are actually pretty good at it, then they might lose ground and then we may lose a resource in there for the tissue. Now, another thing I will just have to say is that different people will have different opinions as to the usefulness of the competition. I think in an ordinary business world, the competition is always valuable. Now, when there are questions that come up about the allocation of important life- saving tissue, then those things can be set aside, as they are for organs. Another difference, though, is this, that for organs, the gap between what is available and what is needed is very severe. The number of organs that are needed to save lives are several times more that are needed than are available. As far as we can tell, with tissue, while there is probably a gap at times for skin, there certainly is not a gap of that magnitude as there is for organs. And furthermore, for other tissue types, there is not necessarily a gap. For example, for eyes, we are not aware of any particular gap. So the tissue industry is more diverse and the needs are different in terms of allocations here, if you will. So, again, I think that the ideas you are presenting need to be on the table, as well as all kinds of other ideas. I do not think we see a clear shot to the goal line on this one. Senator Levin. Your report does not get into pooling. Mr. Grob. No, it does not. Senator Levin. I am just wondering why not. Mr. Grob. The pooling at that time was simply not one of the things that we were looking at as part of the general oversight of the industry. At the time that we did our report, there was no rule against pooling as such. The rule against pooling will occur when the new regulations are issued. Then it will certainly be a rule. Now, FDA has always looked at pooling, but it really was not on the table of the oversight system that we were looking at at the time. The States, like New York and Florida, have rules against pooling, and I believe that the American Association of Tissue Banking has, as well. Senator Levin. You indicated a lack of resources, I believe, for the inspections. Mr. Grob. Yes. Senator Levin. Is that still true? Does the FDA have inadequate resources? Mr. Grob. FDA has made it clear what their budget needs are for the inspection program that they design. Now, those numbers may be modified in light of the doubling of the number of known tissue banks that have come out of the recent registration of tissue banks. These budgets for this were recently proposed and I do not know the disposition of them. Any additional resources for this which FDA, I believe, says is in the order of $3 or $4 million a year for what they knew of at the time they made those budgets, were made in the current budget session, and I do not know what the disposition of that is in the current budget. Senator Levin. We will find out later today. Thank you. Thank you, Madam Chairman. Senator Collins. Senator Durbin. Senator Durbin. Thank you very much, Madam Chairman, and let me follow up on that question. For a number of years, I have been keeping a close eye on the Food and Drug Administration. I cannot imagine how they can keep up with all of the responsibilities we send their way. Mr. Grob. Exactly. Senator Durbin. An agency which spends roughly $1 billion a year is just being overburdened with all sorts of new responsibilities---- Mr. Grob. Yes. Senator Durbin [continuing]. All legitimate, as far as I am concerned---- Mr. Grob. Yes. Senator Durbin [continuing]. But certainly beyond their capability with current staffing. Mr. Grob. Yes. Senator Durbin. We have to get honest about this. If we want the Food and Drug Administration to perform valuable oversight, they have to be given the resources. Otherwise, I do not think it is fair to hold them accountable for too few inspections if they do not even have the inspectors, and you certainly spell out in your report to us about the inadequacy of the inspection of these tissue banks, since 1993. Mr. Grob. Yes. Senator Durbin. Let me ask you to comment on a couple of things, if you might. I want to get into the issue of informed consent in a moment, but first, an article in the Chicago Tribune last year \1\ suggested that in San Antonio, Texas, the medical examiner's assistants were receiving $50 from a tissue bank each time they obtained a family's consent to harvest tissue. The same article also alleged that county supervisors took bids from tissue banks on the right to bodies collected by medical examiners. The winning bidder, South Texas Blood and Tissue Center, agreed to pay $180,000 annually. Do you think such payments are legal under our law that prohibits the sale of organ and tissue? --------------------------------------------------------------------------- \1\ See Exhibit No. 11.b. which appears in the Appendix on page 220. --------------------------------------------------------------------------- Mr. Grob. We have not considered the question you are asking, but we certainly can consider that. One of the things that happened during the course of our study was that we became more aware of the role of medical examiners, which was not on the table at the beginning of the study, but it was one of the things that we began to find out more and more about as the study progressed. So one of the things we have done is that we have decided that we will be conducting a study that examines the role of the medical examiners. Senator Durbin. But in terms of the payments, did you take, in the course of your survey, did you review the law as it relates to the sale of organs and tissues and whether or not you can receive compensation? Mr. Grob. We did examine the law quite carefully when we began our study, and I had summarized earlier some of the complexities we had in trying to come to grips with that law and define exactly what is legal. Once the tissue leaves the donor family, in other words, there is no question that at the point where the donation is being made by the family, that there should be no transaction from the individual to offer a tissue or organ for sale or to be offered any money for donating either, but after that point, then the money can be legitimately used for almost any aspect of the handling of the tissue. But, I guess---- Senator Durbin. I want to make sure it is clear, if I can. Mr. Grob. It is only in exchange for the business. Senator Durbin. I want to make sure this is clear. Mr. Grob. Yes. Senator Durbin. So that the family's decision to donate---- Mr. Grob. Is not affected---- Senator Durbin [continuing]. Cannot be compensated. Mr. Grob. Exactly. Senator Durbin. But beyond that, once the donation has been made---- Mr. Grob. Right. Senator Durbin [continuing]. There can be other intermediaries who start to put price tags on the tissue involved. Mr. Grob. Exactly. Senator Durbin. Is that correct? Mr. Grob. That is correct. The current law, basically, it actually has a list of what you can do more than that which you cannot, and that list, just superficially, would seem to cover almost all the products of tissue. Now, an interesting question you are raising that I do not have any immediate answer for, and I would not want to venture one without consulting with others, is whether--say if the $50 were given, if that were covering a legitimate cost of the other agency, then the law would allow it. Senator Durbin. Yes. Mr. Grob. But if it was simply an inducement for business, I do not think that that is one of the things that the law allows. Senator Durbin. Right. That is an important distinction. Mr. Grob. Yes. Senator Durbin. Cost of transport and transportation, I think that is allowed. Mr. Grob. Exactly. Senator Durbin. But it really does get to the heart of an important issue here, and that is if there is a feeling that somehow this selfless act of a family in donating tissues or organs will relate in some commercialization, I think it is going to inhibit a lot of people from even considering that possibility, and I think that we have to be very honest about that. Now, you really address that from another angle, too, when you talk about the consent forms. Mr. Grob. Yes. Senator Durbin. That is something that I think bears a little bit of scrutiny here, as well. Mr. Grob. Yes. Senator Durbin. You were suggesting that the consent forms be more complete in terms of telling people what is actually going to happen to the tissues---- Mr. Grob. Right. Exactly. Senator Durbin [continuing]. Donations from their loved one. Mr. Grob. Yes. Senator Durbin. You also note, though, that some people have said, I do not want to know too much about this. Mr. Grob. Exactly. Senator Durbin. This is a very sad moment in a life, when someone is dying---- Mr. Grob. Yes. Senator Durbin [continuing]. And you can tell me something, but please---- Mr. Grob. Yes. Do not bother me with that. Senator Durbin [continuing]. If you get into graphic detail here, I cannot absorb all of this and handle it. Mr. Grob. Right. Senator Durbin. I might just walk away from the whole idea. Mr. Grob. Exactly. Senator Durbin. This is a tough balancing act, is it not? Mr. Grob. It is a tightrope, and if you fall off the left side of that tightrope or the right side, you are going to be in trouble. So as far as discouraging donation, it is a hard one. I think that one idea here is, and I think that the statement of principles that were subsequently developed by the industry are somewhat promising in this regard because of the flexibility they provide. They sort of show that here are things that you definitely ought to--information that ought to be provided to a donor, and now here are some other things that you may want to raise, depending on the interest of the donor. And that is exactly what we found. I think in our study, we quoted an individual who said, ``I do not want to know any more about it.'' We also found mixed reaction to the point you raised about the commercialization. There was not such a strong reaction to the idea that profit would be made or that prices would be charged. There was concern about whether those profits would be excessive or not, whether there would be profiteering. But there was no practical way to define it and everyone had a different idea. If I could just give you an example, no one objects to the fact that the surgeon who implants a tissue should get a salary, and then similarly, you could take that concept and just work it back through all the other parts of the processes. People do seem to understand that. But what concerned them more is if the tissue were being used for some commercial purpose that they did not have in mind. If they thought, well, this skin will be used for burn victims, for example, or medical research, or even the training of surgeons or hospital personnel, they might say that is fine. But they probably might not have been thinking that it might be used for some form of purely cosmetic or voluntary---- Senator Durbin. That is an important distinction. Mr. Grob. Yes. Senator Durbin. It is one that I have really tried to grapple with here, because if you are talking about a tissue donation that is going to be used by a plastic surgeon to make an actress more beautiful, puff up her lips or whatever happens to be the fashion statement of the day, as opposed to skin that is being used in a transplant for someone who has been a victim of a burn, I mean, totally different world, but both commercial in nature. Mr. Grob. Yes. Senator Durbin. And drawing that line honestly so that people know what they are getting into makes a big difference. Mr. Grob. Yes. Senator Durbin. I was shocked when I read the series in the Orange County Register.\1\ It had never crossed my mind as I got into this about the use of cadavers for test purposes. I just never thought about a cadaver being used as a test dummy, and yet it has been done. --------------------------------------------------------------------------- \1\ See Exhibit No. 11.a. which appears in the Appendix on page 189. --------------------------------------------------------------------------- Mr. Grob. Yes. Senator Durbin. I am virtually certain that the person who made that donation, signed that consent, did not have a clue that that is what might happen. They were donating for scientific research. Mr. Grob. Right. Senator Durbin. How much should they have known about what was going to happen? I will not go into the graphic details from that series. I invite those who are interested and have not read it to read them---- Mr. Grob. That is right. Senator Durbin [continuing]. Because they are troubling, to think that people made these donations unaware of the lengths to which that donation might go. Mr. Grob. That is why I think that there really needs to be two ways in which the information is provided, one at the point of donation, but the other one more generally. I think that, for example, if I could just reflect with you for a moment, there are other donations we are more accustomed to. For example, I think most of us understand the donation of blood. Senator Durbin. Yes. Mr. Grob. And even of eyes. And over the years, we have been inculturated to accept this and to understand it and know about it, and that has grown up and we are all trained from the time we are very young. We are all trained about this and we understand this. The tissue that we are talking about here, though, we have not been inculturated about as much and there are these expectations or these surprises, as you were describing them, of what people's expectations are. So what I think is that we need to very gradually, but very concretely and very deliberately, begin to get people to understand that. I think there needs to be much more openness about all these things. Perhaps some people would be content if their tissue were used for cosmetic purposes. For example, for skin surgery, they largely need very large pieces of skin, and some of the smaller bits of skin may not be useful for that purpose but could be used, for example, for repairing blemishes or for some constructive type surgery of the face or other things and people might be totally content with that. So it is a complex matter and I do not think there is a clear rule or a clear principle, but I think what we need is more understanding and something that can be done to get that out there so people can gradually learn about this. Then they can make more informed decisions, I think. Senator Durbin. Let me ask you this. Is it true that current law prohibits the sale of fetal tissue for any purpose, but only prohibits the sale of adult tissue for transplantation? Mr. Grob. I would rather not answer because I did not prepare for that at all and---- Senator Durbin. That is a fact. It raises some interesting questions. Mr. Grob. We did not--and it was with great deliberation-- did not take on anything related to reproductive tissue at all. The issues that were raised in the newspapers and elsewhere dealt with what we would call conventional tissue for transplant, and at the time, we were all trying to learn so much, just to come to grips with all of this, that it seemed better at the time just to keep it narrower. Senator Durbin. Well, thank you for your report. Thanks, Madam Chairman. Senator Collins. Thank you very much, Senator Durbin. Thank you, Mr. Grob. Your testimony and your work in this area has been very careful for the Subcommittee's analysis, and as we go forward, we will be in touch with you, so thank you. Mr. Grob. Thank you. Senator Collins. I would now like to welcome our second panel of witnesses this morning. We are pleased to have with us Robert Rigney, the Chief Executive Officer of the American Association of Tissue Banks; Dr. William Minogue, the Chairman of the Board of the Washington Regional Transplant Consortium; and Dr. Valerie Rao, the Chief Medical Examiner of the District Five Medical Examiner's Office in Lake County, Florida. Mr. Rigney was appointed as the first CEO of AATB in June of 1999. He has over 20 years' experience in health care legislation and regulation in both the public and private sector, and I understand actually began his career here on Capitol Hill, so we welcome him back to the Hill. Dr. Minogue began his distinguished career in private practice, specializing in internal medicine and cardiology, having served previously as the Director of Medical Education and then Vice President for Medical Affairs at Overlook Hospital in Summit, New Jersey. Dr. Minogue is now the Senior Vice President for Medical Affairs at Suburban Hospital in Bethesda, Maryland. He has also served as Chairman of a Joint Commission on Accreditation of Health Care Organizations task force. Dr. Rao currently serves as the Chief Medical Officer for several counties in the State of Florida, a position she has held since April of last year. She is board certified in both clinical pathology and forensic pathology and has 20 years of experience in this field. She is also now the President-Elect of the Florida Association of Medical Examiners. As I explained earlier, pursuant to the Subcommittee rules, all witnesses are required to be sworn in, so I would ask that you please stand and raise your right hand. Do you swear that the testimony you are about to give to the Subcommittee will be the truth, the whole truth, and nothing but the truth, so help you, God? Mr. Rigney. I do. Dr. Minogue. I do. Dr. Rao. I do. Senator Collins. Thank you. Mr. Rigney, we are going to start with you this morning, so you may proceed. TESTIMONY OF P. ROBERT RIGNEY, JR.,\1\ CHIEF EXECUTIVE OFFICER, AMERICAN ASSOCIATION OF TISSUE BANKS, WASHINGTON, DC Mr. Rigney. Thank you. Senator Collins and Members of the Subcommittee, my name is Bob Rigney. I am the Chief Executive Officer of the American Association of Tissue Banks. I am accompanied here today by our President, Dr. Richard Kagan. Dr. Kagan is the Medical Director of the Ohio Valley Tissue and Skin Center. He is also Assistant Chief of Staff at Shriners' Burns Hospital in Cincinnati and the Director of the University Hospital's Burn Special Care Unit. On behalf of our members and the people we serve, I want to thank you for the invitation to appear here. We welcome the opportunity to comment on this rapidly changing and critically important field of tissue banking and tissue transplantation. --------------------------------------------------------------------------- \1\ The prepared statement of Mr. Rigney Jr. appears in the Appendix on page 58. --------------------------------------------------------------------------- Today, human tissues are used in a host of medical procedures and new clinical applications are constantly being developed. In the past two decades, human cellular and tissue- based products have improved and saved the lives of millions of our fellow citizens. It is imperative, therefore, that we do nothing to discourage Americans from donating their organs and tissues. Let me address the items on which you asked us to comment, first, the role of the AATB and the tissue banking industry. The AATB is a voluntary nonprofit professional scientific and educational organization. Our mission is public health. We are dedicated to ensuring that human tissues intended for transplantation are safe and free of infectious disease, of uniform high quality, and available in quantities sufficient to meet national needs. To further our mission, since 1984, we have published the only private ``Standards for Tissue Banking.'' This document is recognized as the authoritative source for the industry. For more than 15 years, we have also operated our own voluntary accreditation program to ensure compliance with our standards. All of our institutional members must be reaccredited every 3 years. Accreditation includes, among other requirements, an on-site inspection by independent inspectors, most of whom are former Food and Drug Administration compliance officers and none of whom are affiliated with any tissue facility. We offer a certification program for tissue bank personnel, and we also operate a tissue network and hotline to help tissue banks and hospitals in emergencies, locate musculoskeletal allografts for orthopedic surgeons, and skin needed to treat burn victims. The Association's membership currently includes nearly 1,200 individual members and 74 accredited tissue banks engaged in the recovery, processing, storage, and distribution of human tissue. Not every tissue bank is a member of the AATB, but most of the major tissue banks have obtained AATB accreditation. In fact, we believe that at least a majority of the tissue banks in the United State are AATB accredited. With the exception of ocular tissue, we also believe that AATB members provide most of the commonly used structural tissues for clinical use in the United States. In 1999, the year for which the most recent data is available, the number of bone allografts distributed by AATB accredited tissue banks totaled almost 524,000, more than double what was distributed 5 years ago. In addition, tissue donations to our accredited banks are increasing significantly. AATB accredited banks recovered tissue from more than 17,000 donors in 1999. This represents a 274 percent increase in donations in the last 5 years. It is important to recognize that for nearly a decade following publication of our first edition of our Standards in 1984, the AATB was the only organization overseeing tissue banking in the United States. Today, 17 years later, our Standards are still the most comprehensive and authoritative source in tissue banking, and over those years, we have compiled a remarkable record of donor service and patient safety. Second, you asked us to comment on the instances in which AATB has denied accreditation to tissue banks. At the outset, I want to make clear that the philosophy of our accreditation program is education, not regulatory enforcement. Our goal is to bring tissue banks into compliance with our Standards, not to penalize them for being out of compliance. We, therefore, allow for corrective actions to be taken, but we also provide for suspension, denial, and revocation of accreditation. Since the AATB's accreditation program began in 1986, a total of 116 tissue banks have been accredited. Of that number, 43 banks are no longer accredited. Approximately 23 of the 43 banks have either closed, merged with other banks, or for whatever reason did not seek reaccreditation. The remaining 20 banks failed to demonstrate compliance with AATB Standards. Of these 20 tissue banks, 14 were denied accreditation following reinspections. Inspections of four banks were terminated because of obvious noncompliance at the time of the inspection and these banks withdrew from the accreditation process. Two additional banks would have been recommended for denial. Because their current accreditation was about to expire, they withdrew from the process and let their accreditation lapse. There have also been approximately ten other banks that applied for their initial accreditation but were denied or dropped out of the process. Third, you requested our views on the roles of for-profit and not-for-profit tissue banks. AATB accreditation is open to any tissue bank that, one, voluntarily agrees to abide by the policies and procedures of the Association, and two, demonstrates adherence to the Standards by successfully completing the AATB's accreditation program. To ensure compliance with our Nation's antitrust laws, we do not now, nor have we ever, differentiated between for-profit or not-for- profit tissue banks. Next, you wanted our opinion regarding pooling tissue. In all the private and public reporting about tissue banking and tissue transplantation, the greatest untold story, in our opinion, is safety. During the past 7 years, for example, tissue banks accredited by the AATB have distributed more than two million allografts to surgeons without a single reported case of disease transmission from donor to recipient. For the past 12 years, AATB Standards have prohibited the pooling and commingling of tissues to prevent infectious disease contamination and cross-contamination. This requirement was adopted because of safety concerns after reports in the 1980's that linked transmission of Creutzfeld-Jacob disease, or CJD, in Japan to human tissue that had been processed in batches in Germany. There has never been a case of CJD transmission from tissue processed in the United States. We believe that this safety record is due, at least in part, to the prohibition on pooling contained in our standards. Fifth, you asked for our assessment of the current regulatory oversight of tissue banking. Tissue banks have been regulated by the FDA since the agency issued its interim regulations in December of 1993. The agency issued its final regulations in 1997. As detailed in our written statement, the 1997 regulations gave FDA the authority to inspect a tissue bank's facilities, equipment, processes, the screening and testing of donors, medical records, and products. The agency also possesses the police power to sanction tissue banks found in violation of the FDA regulations. The FDA's current regulatory authority over tissue banks is considerable and the agency has been exercising that authority. We know, for example, that in the past few years, the FDA has inspected approximately one-third to one-half of AATB accredited banks each year. For us, the question is not that FDA has no authority to regulate tissue banks, but whether it has the resources to enforce its existing regulations. Finally, you requested our opinion of the Food and Drug Administration's proposed rules to expand its oversight of tissue banks. The AATB has had a longstanding history of support for the FDA's goal of developing a balanced, effective, and reasoned program of tissue regulation. That support began with the FDA's first regulatory initiative in 1993 and continued with the 1997 final regulations. We have also supported the FDA's concept for regulating human tissues that was published 4 years ago. Human tissues are not drugs, biologics, or devices, and they should not be regulated as such. To implement this new regulatory framework, the FDA published its tissue action plan, the principal components of which were the three separate regulations covering registration, donor suitability, and good tissue practices. Since its first publication, the AATB has always supported the FDA's registration of tissue banks, and we are pleased that registration and product listing are now realities. The AATB has also strongly supported mandatory donor screening and testing to prevent disease transmission, as outlined in the FDA's proposed donor suitability rule. Since 1979, the AATB has had published guidelines on donor selection criteria, and donor suitability requirements have been included in every edition of our Standards since they were first published in 1984. In addition, the AATB has generally endorsed the provisions of the FDA's proposed current good tissue practices rule. They are specifically and directly designed to address the risk of disease transmission to patients. We have also submitted extensive comments to the FDA that included recommendations for changes in this regulatory proposal. The AATB believes that the FDA has adequate regulatory authority at this time. The agency has proposed a regulatory framework for human cellular and tissue-based products that is in keeping with the unique characteristics of human tissue. Once all three proposed rules are final, we believe that sound public policy dictates that the new regulations are given sufficient time to work before their effectiveness is evaluated. In conclusion, let me simply reiterate that the principal focus of the AATB is the tissue donor, his or her family, and the recipient patients. We respect and honor our donors and their families for helping to ensure that patients receive their life-enhancing and sometimes life-saving gifts. We are the stewards of their gifts and we take that responsibility very seriously. We serve patients by helping to ensure the quality, safety, and availability of tissues and cells for transplantation. This is our public health mission and we are constantly reviewing and improving our standards, our programs, and our operations to address that mission. I thank the Subcommittee for its time and attention and I will be happy to try to answer any questions the Senators may have. Thank you. Senator Collins. Thank you, Mr. Rigney. Dr. Minogue. TESTIMONY OF WILLIAM F. MINOGUE, M.D.,\1\ CHAIRMAN OF THE BOARD OF DIRECTORS, WASHINGTON REGIONAL TRANSPLANT CONSORTIUM, WASHINGTON, DC Dr. Minogue. Thank you. Good morning, Madam Chairman. I am Dr. William Minogue, Chairman of the Board of Directors of the Washington Regional Transplant Consortium. I would like to thank you for this opportunity to testify before the Subcommittee today. My goal is to share with the Subcommittee WRTC's experience with the tissue banking industry. --------------------------------------------------------------------------- \1\ The prepared statement of Dr. Minogue appears in the Appendix on page 74. --------------------------------------------------------------------------- The Washington Regional Transplant Consortium is a federally-designated organ procurement agency for the Washington, DC area. We perform organ recovery services for 48 hospitals in Maryland, Virginia, and the District of Columbia, a responsibility we have had since 1988. As you are aware, all organ procurement agencies are required by Federal law to be nonprofit. Each OPO has regulated functions, responsibilities, reimbursement practices, and a board of directors or an advisory board with federally-mandated representation. I think our Board of Directors illustrates this. It is an all-volunteer board which includes transplant surgeons, a liver transplant recipient, a donor family member whose wife was a donor and 4 years later, tragically, his daughter was a donor following a serious automobile accident, and a prominent biomedical ethicist, in fact, the senior ethicist at Georgetown University. I think the makeup of that board avoids any mischief that could possibly come in this industry. They give us such wonderful support. I am an internist. Federal law makes one OPO responsible for organ recovery and distribution in a given geographical area and makes the OPO responsible for approaching families regarding the option of organ donation. This same arrangement does not exist in tissue donation, as the Subcommittee obviously is aware. We have chosen to offer both organ and tissue recovery services for one purpose, to protect the integrity of both the organ and tissue donation processes. To the public, organ and tissue donation constitutes the same activity. Families confronting the loss of a loved one do not make a distinction between a person who recovers a heart, lungs, liver, or kidneys and the person or organization that recovers skin, bone, heart valves, and corneas. Each time a family decides not to donate because of confusion or suspicion, then we risk the lives of several people waiting for organ transplants. We have one high standard for family approach, donor screening, and tissue recovery and we have through experience developed an approach to working with donor families that respects their grief while offering them the possibility of turning their loss into some greater good. We are also responsible for the integrity of the organs and tissues that are recovered and are entrusted with protecting the recipient community from potentially unsafe organs and tissues. Moreover, we are accountable to the donors and their families to ensure that these gifts will be respected and utilized appropriately. For these reasons, we endorse the recommendations brought forth by the Model Elements of Informed Consent for Organ and Tissue Donation developed jointly by the Association of Organ Procurement Organizations, the American Association of Tissue Banks, and the Eye Bank Association of America. We encourage its implementation industry-wide. As you know, there are over 75,000 people nationwide waiting for life-saving gifts. Tissue donation is life- enhancing and improves the quality of life. However, there is no comparable shortage of tissue for donation or urgency for tissue transplants, so we impose stricter standards on tissue donor suitability. If tissue donor evaluation and recovery practices are unsafe, a recipient can be subjected to unnecessary risk. Organ donation procedures are regulated while tissue donation is not. This is why we support the Food and Drug Administration's proposed rules on donor suitability and good tissue practices. WRT has chosen LifeNet, a federally-designated OPO in the Tidewater area of Virginia, as its tissue bank to process and distribute tissue recovered by us. Because of their high standards, they also recognize that tissue banking and organ donation are inextricably linked. We trust LifeNet as our partner because of their integrity, their commitment to quality products and services, and to donors and their families. Regrettably, not all organizations involved in recovery processing and distribution of tissue share our concern to maintain and respect the integrity of the donation process and the sanctity of the donated gift. Consider, please, the following scenario: An elderly patient dies at a local hospital. In accordance with the Federal regulations, the hospital refers this case to the local OPO for potential donation. The OPO determines that this patient is not a candidate for organ or tissue donation and communicates this to the hospital and the family. The decision is based on the generally accepted suitability criteria for tissue banks. Sometime later, the OPO receives an excited call from the local hospital, which demands to know why this patient is now being pursued for tissue donation. The OPO investigates this case and determines the following: Another tissue recovery agency obtained confidential patient information without the knowledge of the hospital. They told the family that this patient's tissue could be recovered for transplant purposes. The family specifically stated they did not wish the tissue to be recovered for use in medical research. The second tissue recovery agency was pursuing the tissue for transplant even though the following medical conditions existed: The patient was outside the generally accepted age range for donation; the patient had a history of cancer that had rendered the tissue medically unsuitable; the patient had been dead for almost 24 hours; and there was evidence of a recent infection. The investigation points to the following conclusions: The fact that the family had specifically stated they did not wish to donate for research indicates that this agency was either pursuing donation for transplant purposes or recovering tissue for research but not fully disclosing that intent to the family. They were recovering tissue in our region for a publicly-traded for-profit tissue bank. Neither the for-profit tissue bank nor their local recovery agency had a written agreement with the hospital to recover tissue at that facility, nor were they authorized to talk to the family about tissue donation. Situations like this occur when organizations that lack sufficient experience in tissue recovery become involved. Furthermore, some of these organizations operate from profit motives that supercede the public interest. Our example illustrates the necessity for clear industry standards with regard to the safety and soundness of donated tissue. There are an increasing number of for-profit tissue processing and distribution agencies entering the donation arena. These entities need access to human tissue in order to generate revenue and are under shareholder pressure to increase their market position to maximize profit. They are not required to take the overall donation interest of the public into account, and unlike OPOs, their boards have no requirement to represent the public interest. In addition, we have seen for-profit tissue banks create nonprofit recovery agencies or use local nonprofit organizations as a conduit for human tissue into their processing and distribution facilities. These nonprofit groups usually have established relationships with hospitals outside of tissue donation, which gives them access to hospital facilities and patient information. Patients and their families, as well as members of the local nonprofit organizations themselves, are not aware that the donated gift will go to publicly-traded corporations as raw material, and these recovery agencies have also attempted to transfer bodies out of the hospital to locations where they are able to perform the recovery. We perform all of our recoveries in operating rooms under clean and sterile conditions. Our recommendations, then, are that both donor and recipients must be protected, the former by implementing an approach such as the Model Elements of Informed Consent for Organ and Tissue Donation, and the latter by the swift adoption of the Food and Drug Administration's two proposed rules expanding donor screening and testing and on standards for good tissue donation practices. We also endorse the institution of an annual reporting mechanism for all entities involved in tissue donation processes, both for-profit and not-for-profit, to ensure transparency. We are pleased that tissue banks have begun registering with the FDA in accordance with its newly implemented rule and hope that comprehensive inspection of all tissue banks by the FDA will soon follow. Moreover, we agree with recent actions taken by the FDA in urging a tissue processing and distributing organization to stop its practice of pooling from multiple donors during processing. The experience with a CJD contaminated dura mater allograft is adequate evidence of a need to ban this practice. WRTC would like to highlight two additional recommendations for consideration. First, we recommend giving OPOs oversight authority over all donation activities, including family contact, donor evaluation, recovery, processing, and distribution. Second, ensure that tissue recovery organizations are nonprofit and that relationships with for-profit organizations are held at arm's length. It is neither wise nor possible to eliminate for-profit companies from all processing and distribution activities resulting from tissue donation. In fact, new patient care technologies based on donated human tissue may well be developed by for-profit or jointly between nonprofit agencies and for-profit companies. In conclusion, society does not distinguish between organ donation and tissue donation. Organ donation is well regulated and closely controlled in the public interest. The task before us now is to ensure that the tissue banking industry is held to the same high standard. We look forward to the day when our citizens completely accept the benefits of organ and tissue donation as a common, dignified, and valuable contribution to the quality of life and to death with dignity. Thank you. Senator Collins. Thank you, Doctor. Dr. Rao. TESTIMONY OF VALERIE J. RAO, M.D.,\1\ CHIEF MEDICAL EXAMINER, DISTRICT FIVE, LEESBURG, FLORIDA Dr. Rao. Good morning, Chairman Collins and Members of the Permanent Subcommittee on Investigations. My name is Dr. Valerie Rao. I have been appointed by the Governor of the State of Florida to hold this position as District Five Medical Examiner. The district involves five counties running from Central Florida all the way to the Gulf, so it is a very, very large area. I also sit on the Medical Examiner Commission, and that is also a Governor-appointed position. I have been there since April 2000, prior to which I was in Dade County for 18 years and 9 months. --------------------------------------------------------------------------- \1\ The prepared statement of Dr. Rao appears in the Appendix on page 82. --------------------------------------------------------------------------- I would like to thank you for inviting me to appear today before the Subcommittee and I am very pleased to discuss this most important issue to me. I believe that human donation is a selfless and invaluable gift, and as such, would like to see that all tissue recovery organizations are required to adhere to standards that promote safety and respect for donation. Unfortunately, my observations tell a very different story and I would like to share my experience with this Subcommittee. The role of the medical examiner in organ and tissue transplantation results from government-mandated investigation into sudden and unexpected or traumatic deaths to determine the cause and manner of death. The manner includes natural, accident, suicide, or homicide. A medical examiner death investigation includes documentation and evaluating the scene of death or the injury as well as the body at the scene. Included is the determination of the terminal episode and the medical history of the decedent. In Miami-Dade County, where I spent 18 years and 9 months as an associate medical examiner, when a case arrives, it is initially screened by a tissue bank coordinator for consideration as a potential donor. If the quality appears suitable, the next-of-kin authorization is received. In the meantime, the medical examiner performs a careful external examination. The body is transported to a sterile autopsy suite where a tissue bank pathologist participates in the tissue excision process. During this procedure, blood and lymph node tissue are retained for screening. The body returns to the medical examiner for an autopsy. For the non-medical examiner case, the tissue bank pathologist performs the autopsy. At any time during this procedure, should testing raise doubt, the donor material is removed from the preparation and distribution pipeline. Most medical examiner donor cases are people of prior good health who experience violence, 24 percent; sudden, unexpected, non-infectious cardiac dysrhythmia or stroke, 76 percent. These are the statistics from Miami-Dade County, Florida, from 1995 through 1999. The very nature of such cases of previously healthy individuals with sudden death creates a donor pool where infection and malignancy are minimized. The protection against transmittal of infection and malignancies must be the primary principle in all transplantation programs, and the shortage of donor materials and business pressures should not work against this principle. Therefore, it is recommended that tissue bank physicians and coordinators become aware of their own State medical examiner guidelines in order to understand the investigative process and its relationship to quality assurance. As the medical examiner determines the cause of death, a complete autopsy and tissue for subsequent microscopic examination serves as a quality assurance step in the transplantation process. Medical examiners are charged, in addition to forensic investigation into death, also with public health issues, particularly with regard to the possibility of transmission of infectious disease. Autopsies are required for donor acceptance, and medical examiners believe that autopsies should be done routinely on all donor cases. Autopsies are the only means by which diseases such as tuberculosis, histoplasmosis, degenerative disease of the brain, unsuspected malignancy, viral myocarditis, non-A, B, or C hepatitis, diseases of unknown etiology, and other potential transmissible diseases can be detected and those donors excluded from the donor pool. The entire issue of medical examiner participation in the acquisition of tissues from cadaver donors must also be considered in light of the recent developments. As I stated, medical examiners are the guardians of public health interest and should be in a position to make a determination which tissue bank serves both the interests of the recipient patient as well as to satisfy the medical examiner's statutory duties. Certainly, a trust in the professional competence and reputation of the tissue bank personnel is an important factor in making such a determination. Last April, I became concerned regarding several questionable practices by a tissue bank. My first concern was when Regeneration Technologies, Inc., through its association with the University of Florida Tissue Bank, would accept donors with non-metastasizing malignant tumors of the breast, colon, cervix, and lung. They also accepted donors with septicemia, pneumonia, and intestinal obstruction. To the best of my knowledge, they do not perform routine blood or bone marrow aspirate cultures, which is done to detect for possible disease. They do not require an autopsy and, hence, do not know the cause of death in the donor. Tissue excisions are performed by technicians without physician supervision or participation, and the use of sterile precautions are not observed during the excision and the retrieval process. The technicians do not have sufficient training and knowledge to observe changes which would be noted by a pathologist, yet they performed an autopsy removal of the brain which would obviously impair further medico legal investigation into the death of the deceased. Finally, the customary care and respect for the body of the deceased are not observed. I believe that the dead have rights, too. In contrast, the University of Miami Tissue Bank has demonstrated quite the opposite. All of their excisions are performed aseptically by trained physicians in an operating room environment. Blood cultures and bone marrow cultures are also routinely performed. As I stated before, I believe that public trust in the professional competence and reputation of those involved in the donation process is vital to its continued success. Thank you very much, Madam. Senator Collins. Thank you, Dr. Rao. Mr. Rigney, I want to start by asking you some questions. You mentioned in your testimony that the Association has accredited 74 tissue banks, is that correct? Mr. Rigney. That is correct. Our current membership is 74. Senator Collins. And according to the FDA, we know that at least 350 tissue banks have registered to date under the agency's new mandatory registration rule, and perhaps your testimony was written before that fact became available. I am trying to reconcile your testimony saying that most of the tissue banks in the United States have obtained AATB accreditation. In fact, we believe that at least a majority of the tissue banks are AATB accredited. If you have accredited 74, yet we know that 350 have registered with the FDA, you are a long ways from accrediting the majority of banks, are you not? Mr. Rigney. That would be correct, Senator. The testimony was written when the only figure we knew was what the OIG had reported. We received the list that the OIG reported and compared it against our own banks and our knowledge of the existence of other banks. What we found in our review was that of the 90 banks that were not accredited and cited in the OIG figures, about 30 of those, as we counted them, were either double-counted because they were listed both under a former name of the bank and their current name, or they had gone out of existence and closed their operation, or they had merged with another bank, or they were now accredited by the AATB. Another third of that number were banks that we knew that did exist and were not accredited members. And the final third was a group of banks that we had never heard of before, quite frankly. Senator Collins. But you are talking about the OIG's report. Mr. Rigney. Right. Senator Collins. Were you surprised to learn that there were 350 tissue banks that registered with the FDA? Mr. Rigney. I just learned that yesterday, the number that had registered with the FDA. What I am told is that that number includes a number of reproductive banks, who are not required to actually register until the year 2004. It also includes a number of stem cell banks, a number of laboratories, and others that we would not necessarily consider a traditional type of tissue bank, but that would meet the regulatory definition under the registration rule. Senator Collins. I would inform you that the Subcommittee staff raised that issue with the FDA and that was not the case. Mr. Rigney. OK. Senator Collins. The vast majority of these are tissue banks---- Mr. Rigney. Then that number would, indeed, surprise us. Senator Collins. And one of my concerns suggests that there are an awful lot of tissue banks out there that have been operating without accreditation by your Association, without oversight by State regulators--very few States have an effective regulation of tissue banks--and flying under the radar of the FDA, as well. We did get a breakdown of the numbers and there were actually 368 banks. We took out those that were the stem cell ones that you mentioned or reproductive and you still get close to 350. So it seems to me that the industry is far more extensive and there are far more organizations involved in the recovery and processing of tissues than any of us would have guessed, which is troubling to me in terms of proper oversight. The HHS Inspector General's report mentioned that there are differences between your required standards for accreditation and the FDA's current requirements. Could you describe those differences for us? Mr. Rigney. Let me describe them, if I can, Senator, in general terms. If you want a specific side-by-side, we will try to prepare that. Senator Collins. Just general will be fine. Mr. Rigney. Generally speaking, our current Standards are much more detailed and much more extensive than FDA's current final rule under which it is operating. That is sort of the long and the short of it. We go into many more areas in terms of accreditation of the tissue bank than FDA's current regulations would cover. Generally speaking, as a follow-on, their proposed rule, that good tissue practices proposed rule, is patterned in many respects off of our Standards. Senator Collins. Do you require more testing than the FDA does for specific pathogens? Mr. Rigney. We require basically the same testing, except one that immediately comes to mind in terms of living donors. We would also require a hepatitis B core antigen test. Senator Collins. Do you require screening for CJD, because I do not believe the FDA does. Mr. Rigney. We do have screening requirements for CJD in our Standards. Senator Collins. Has the AATB ever suspended or revoked its accreditation of a tissue bank? Mr. Rigney. Yes, and I cited some of those numbers in my statement. Senator Collins. When that occurs, however, there is nothing that prevents that tissue bank from continuing to operate, is there? Mr. Rigney. No. Our Association and our accreditation is voluntary. You submit to it. The only power we have, essentially, is to revoke one's accreditation once it is granted, or to deny it if they are applying for it. Senator Collins. Do you know if any of the banks for which you have revoked or denied accreditation are still operating? Mr. Rigney. I personally cannot answer that for you right now. I would be glad to check that out and report back to you.\1\ --------------------------------------------------------------------------- \1\ See Exhibit No. 19 which appears in the Appendix on page 251. --------------------------------------------------------------------------- Senator Collins. I would appreciate your doing so. Based on our investigation, there are indications that some of the banks that have been denied or revoked accreditation by your organization are still operating. When you do act to revoke an accreditation, do you report that action to the FDA or share that information with the FDA? Mr. Rigney. Generally speaking, no. Senator Collins. Do you think that would be helpful to the FDA in its inspection and evaluation of tissue banks that might be problematic? Mr. Rigney. The problem we have, Senator, is that our accreditation program provides certain assurances of confidentiality as the bank is moving through the process. Senator Collins. Do you believe that the FDA should prohibit pooling of tissues, as your members are prohibited from doing? Mr. Rigney. Right now, based upon what we know, we have, as I noted, had standards prohibiting pooling for 12 years and think that the FDA should probably have the same standards---- Senator Collins. Thank you. Mr. Rigney [continuing]. If they do not already. Senator Collins. Dr. Minogue, your testimony is very interesting to me because you have tremendous experience in overseeing organ transplants in the donation process, which seems to me, as your testimony suggests, to be much more regulated, much better understood. Processes are far more established. One area that concerns me as I have been examining this issue is the differences between organ and tissue donation. Do you think that the procedures for obtaining informed consent for tissue donation should be more like those that are used for organ donation? Dr. Minogue. Yes, I do. I believe that the organ procurement process has matured over time. I happen to have been one of the founding members of this board 14 years ago and it was pretty much made up of transplant surgeons and the hospitals they represented trying to get our act together. Now it is so wonderful and mature and it sounds to me, and I am learning more today than I ever did know about the tissue side, that tissue has to mature in a similar fashion. But it needs this oversight. I strongly favor the not-for-profit, altruistic model of my board. There is just no possibility for us to get into, as I mentioned before, some mischief of this type. There must be oversight. Also, of course, favor that there be one regional tissue procurement organization, whatever that may be, so that this competition goes away. Senator Collins. Modeled on the OPO---- Dr. Minogue. Modeled on the OPO arrangement. Senator Collins. I would like to talk to you further about a local nonprofit organization that you referred to in your testimony, because I think it illustrates some of the underlying issues that you have identified and that we are discussing today. It is my understanding that the organization involved is a local service club and that it provides tissue to a large for-profit tissue company called Regeneration Technologies, Inc., or RTI. It is further my understanding that RTI uses tissue pooling, or has been using tissue pooling, which many experts tell me, and you have testified this way, also, that the risks far outweigh the benefits. Is that an accurate statement? Dr. Minogue. That is a perfectly accurate statement, yes, ma'am. Senator Collins. I would like to refer to a specific exhibit, which is Exhibit No. 4,\1\ and I think you have it in the book before you, also. Now, as you probably recognize, this is a WRTC donor referral and tissue bank donor worksheet, and it is my understanding that this is used to establish the medical history of a potential donor in order to evaluate the suitability. I would note that we have redacted any personal information that could identify the individual involved. Is that what this is used for, to work up whether or not this person may be suitable as a donor? --------------------------------------------------------------------------- \1\ See Exhibit No. 4 which appears in the Appendix on page 116. --------------------------------------------------------------------------- Dr. Minogue. That is correct. Senator Collins. Now, as I look at this worksheet, it seems pretty clear to me that WRTC rejected this individual as a donor for skin, bone, heart valves, and eyes, and the reasons why that the WRTC found the donor unsuitable were two reasons, primarily, one, that he was 82 years old, and second, that he had a history of prostate cancer. In your view, would those two factors make it too risky to transplant tissue from this donor to someone else? Dr. Minogue. The age is problematic because of the suitability of the tissue and the likelihood of an effective transplantation later on. And as you have heard earlier, since there is not a great shortage of tissue, as there is with solid organs, why in the world take these risks, even if we do not have scientific evidence that prostate cancer, which may well be very localized, would be harmful to the patient or to the recipients downstream. This sort of case, and it sounds quite like the case that I illustrated in my testimony, was rejected by us and would continue to be. Senator Collins. I would like to switch to Exhibit 5,\2\ which--this is a worksheet that was produced by the local nonprofit organization that I mentioned that was acting as a tissue bank, and as you can see in the first question, has the deceased ever had cancer, tumors, leukemia, lymphoma, received radiation therapy or drugs for cancer, and the answer is yes to that. It further goes on to ask some other questions, which also identify problems. But the very first question indicates that this tissue bank knew that the individual had prostate cancer, so there is no doubt that that was known to the tissue bank based on this document, is there? --------------------------------------------------------------------------- \2\ See Exhibit No. 5 which appears in the Appendix on page 118. --------------------------------------------------------------------------- Dr. Minogue. None whatsoever. Senator Collins. Do you know whether this tissue bank, despite this information, tried to persuade the donor family to give permission to recover various tissues from the body anyway? Dr. Minogue. I do not, as personal knowledge, know. A colleague of mine, from WRTC, who directs all of this tissue donation process, is here today and he might be able to comment, if you wish, but I do not know. Senator Collins. Is that individual available? Dr. Minogue. Yes, he is. Senator Collins. Would you like to consult and relay? [Pause.] Dr. Minogue. David DeStefano, my colleague, says he does not believe there was persuasion per se, and I believe that was part of the question, but they were indeed pursuing this patient for donation and the patient had already been rejected by WRTC. Senator Collins. It is unclear to me why any tissue bank would pursue this individual as a potential donor--not pursue the individual, but discuss this with the individual's family. Do tissue banks face pressure to produce a certain amount of tissue? Dr. Minogue. That is the perception that we are working on. Again, I do not have firsthand knowledge of that, but there seems to be quite a bit of aggressiveness in some parts of that industry and that is disturbing to us. Senator Collins. And it is your opinion that the for-profit sector of the tissue bank industry is particularly subject to pressure to recover more tissue? Dr. Minogue. It seems logical, particularly on the recovery side. As I mentioned in the testimony, the for-profit processing end of the equation and that whole industry may well do creative works and research and so forth if properly regulated and motivated, but to tie the donation itself to profit is very disturbing to us for the reasons I mentioned, that these are very delicate situations at the bedside, as you can imagine, and to have any suggestion of aggressiveness in this regard is just destructive to the whole process. At our board, we look very carefully at all of our hospitals and do death review, for example, and any time we see that there was an opportunity missed for solid organ transplantation, we treat that and investigate it and encourage the hospital to investigate it, because as many as five or six lives could have been saved by that proper donation. Why did it go wrong? That is how seriously we take one single loss of an opportunity. So in any way tainting this terribly complex dynamic at the bedside is just wrong. Senator Collins. What characteristics does WRTC look for when developing a relationship with a tissue bank? Dr. Minogue. A high degree of integrity, that they have the same feeling and passion for protecting the donation process and that they remain at arm's length as far as all of the business, if you will, of their organization, and just have the same philosophy of integrity and ethics. Senator Collins. Do you at times refuse to do business with certain tissue banks? Dr. Minogue. We do. Senator Collins. Thank you. Just one final question for you. Do you believe that tissue banks--you have testified that there needs to be a better regulatory structure for tissue banks. Do you believe as part of that that there needs to be regular inspections of tissue banks to ensure compliance with good procedures? Dr. Minogue. Absolutely. Senator Collins. Thank you. Dr. Rao, I would like you to explain further about your experiences with RTI and tell me more specifics on what troubled you about this particular tissue bank. Dr. Rao. Yes. When I took the job initially, I had to find out what was going on in the district and there were several tissue banks that came in and were taking tissues and my technicians were telling me that there were some very strange goings on, and so I waited to see for myself, and the first case I saw, as soon as I saw the case, this was a lady whose upper extremities were taken and the incisions run all the way down the arm to take out the long bones and the incisions were not even closed and the body was--it just took me aback. I was not used to this. I just looked at them, like, no, these people are not coming back here. That was it. I had made my decision. I received a lot of political pressure because of that decision, but I just could not be associated with that kind of business, because a medical examiner--what will happen is they will say it came from District Five and then it reflects on the medical examiner that was involved in that transaction. So I told all the tissue banks that there had to be a moratorium on tissue recovery in District Five until I could look at everything that was going on. That was one incident. The other incident, they took bones prior to it becoming a medical examiner case. Initially, it was not a medical examiner case, and then the family called with some history which then brought it under the jurisdiction of the medical examiner. And the issue that was to be discussed by the medical examiner was did this lady have a stroke? So when I opened the body and the head, I found that they had taken the brain and they had placed the cerebral hemispheres in the chest cavity, and then they took a dowel to replace the spine that was removed and pushed it up into the foramen magnum, as a result of which the entire cerebellum was all squashed. So there was no way I could determine, did this lady have a stroke. But they did not realize it was going to come to the office. So there was a second incident that I saw this happened, and after that, of course, I was determined not to allow them to come into the office. The above examples all pertain to the University of Florida Tissue Bank, an affiliate of RTI. Senator Collins. In the first case that you gave us as an example of inadequate respect for the dignity of the donor and, undoubtedly, the family would have been very upset to see the body left in that condition, and I want to indicate that is not typical, that most tissue banks do a very good job and are very respectful, as are the OPOs and those involved in organ donation, but that was an example where there was inadequate respect for the donor's body. The second case sounds like the haste to recover tissue caused you to be unable to perform your duties as a medical examiner, is that accurate? Dr. Rao. Exactly. Senator Collins. Could I ask you about a third issue, and that is have you ever been concerned about whether there were sufficient screenings performed on tissue to make sure that they were safe for donation? Dr. Rao. Yes. At one of the ME committee meetings I had, the director of the University of Florida Tissue Bank came to me and talked to me and asked if he could come back into the office, and I said to him, ``If you agree to these standards and these tests, then yes.'' And he looked at me and he said, ``Well, that will not be essential,'' and then I said, ``Well, then you cannot come back.'' So he did not want to comply with what was required, as a result of which I thought even more that he should not be allowed to take tissue from District Five cases. So they do not want an autopsy on every case because it is expensive and it will cut into the profit margins, but I am not concerned about profit margins. I am concerned about the public health, safety in the recipients that get this bone donation. Senator Collins. What kind of research can a family, which is considering donation of a loved one's tissues, do to ensure that they are dealing with a reputable tissue bank? Is there any advice you can give us? I actually think that is a very difficult burden to put on the family. I mean, the family is going through a time of incredible grief and difficulty, which is one reason why I think we have to look to the Federal Government to perform that kind of role. But assuming we do not have a good regulatory structure in place right now, or a sufficient one, what kind of advice could you give to families that are considering donation, that very much want to make a gift that is going to enhance the quality of life for others, yet want to make sure that they do not run into the kinds of problems that you have identified? Dr. Rao. Actually, to answer that, there was a letter received, which is part of your exhibit package,\1\ from an elderly gentleman, and you can see that he is keeping up with the literature and with the press releases out there, and I was pretty surprised to get that letter from him. You see the giving nature of this individual. He is a pretty elderly man, 84 years old, and he still wants to give of himself but he is very concerned. Am I doing the right thing? How should I go about this? --------------------------------------------------------------------------- \1\ See Exhibit No. 3 which appears in the Appendix on page 114. --------------------------------------------------------------------------- Being unaware of the many agencies out there, my advice would be to do some research as to which bank is going to take this, what is their reputation out there, and research it on their own, then make a decision, hopefully they will talk to the medical examiner, if it is a medical examiner case, and think, am I comfortable with this tissue bank, and go from there. Senator Collins. Thank you. I just have one final question for all three of you. This morning, we heard some very disturbing testimony from the Office of Inspector General on practices that the FDA had caught during its inspections, which we have learned have not been as frequent or as widespread as we would all like to see, which identified tissue banks engaged in the practice of repeat testing in which tissue is repeatedly tested until the tissue bank obtains the result that it wants of no disease, even after previous tests have identified problems. Are either of you familiar with that and could you comment on that practice? Dr. Minogue, we will start with you. Dr. Minogue. Certainly, I was as startled as you were to hear that today, and I am not aware of any test in medicine that goes from positive to negative just through repetition. So there is something very strange about that piece of information. Senator Collins. I thought it was one of the most disturbing statements made at this hearing. It just seems to me that if a negative test, or a positive, in this case, a positive test indicating a problem is reached, that tissue should immediately be discarded. The idea that, instead, the technician just tests it again and tests it again and tests it again in hopes of getting an all-clear result is very troubling as far as the safety of the tissue in the system. Dr. Minogue. Repeated testing, we will do confirmatory tests often. If we have a suspicion, let us say, and we get a negative, we might test to be darn sure. But to repeatedly, and that was the testimony, to repeatedly test until it is negative, that is just awful. Senator Collins. Mr. Rigney, have you heard of this before? Mr. Rigney. Certainly. Senator, every manufacturer's test kit, be it for living donor sera or for cadaveric sera, contains test kit instructions specifying how you are supposed to conduct that test. Without going into the details of how these tests are run, repeated testing that would in any way be different than what is in the manufacturer's instructions would be a violation not only of our Standards, but I think of FDA requirements. It would certainly, in our case, trigger a mechanism to suspend or revoke accreditation, or to deny it if it was somebody applying initially. Senator Collins. Thank you. Dr. Rao, have you heard of that before, and given your extensive experience as a physician, could you give me your opinion of that practice? Dr. Rao. I am not familiar. I was pretty disturbed, too, because in blood banking, we did blood banking during our training, if there was a unit which had anything, any little thing, the unit was discarded, and I think blood banking and tissue banking should both be on a similar par when you think of standards, because this is somebody's life one is dealing with. Senator Collins. Thank you. Mr. Rigney. Senator, I would simply note that the stories I have heard and the reports that I have seen of such cases would not be limited to tissue banking. They also involve blood banks, where there have been a number of recalls precisely for those reasons, as well as other types of laboratories. Senator Collins. Thank you. I want to thank all of you for your testimony and your assistance to the Subcommittee. Thank you. Senator Collins. Our final witness today will be Dr. Kathryn Zoon, the Director of the Center for Biologics Evaluation and Research within the Federal Food and Drug Administration. She has been with the FDA since 1980. Dr. Zoon, we are very pleased to have you with us today. Before you get too comfortable, I do have to swear you in. Do you swear that the testimony that you are about to give to the Subcommittee will be the truth, the whole truth, and nothing but the truth, so help you, God? Dr. Zoon. I do. Senator Collins. Thank you. Please proceed with your testimony. TESTIMONY OF KATHRYN C. ZOON, PH.D.,\1\ DIRECTOR, CENTER FOR BIOLOGICS EVALUATION AND RESEARCH, U.S. FOOD AND DRUG ADMINISTRATION, WASHINGTON, DC Ms. Zoon. Thank you. Good morning, Madam Chair and Members of the Subcommittee. Thank you for inviting me to participate in this hearing concerning human tissue banking. I am Kathryn Zoon, the Director of the Center for Biologics in the FDA. My Center is responsible for the regulation of many different types of human tissues and cells used in transplantation. Today, I will provide background information on the regulation of human tissues for transplantation and FDA's current and future actions to help ensure the safety and availability of these important products. --------------------------------------------------------------------------- \1\ The prepared statement of Ms. Zoon appears in the Appendix on page 84. --------------------------------------------------------------------------- No medical product is risk-free. The FDA regulates tissue under the authority of the Public Health Service Act and the Federal Food, Drug, and Cosmetic Act. Several categories of human tissue used for transplantation are being regulated as medical devices under the 1976 Medical Device Amendments. Many cellular and tissue base products are regulated as biological products under the Public Health Service Act and the Food, Drug, and Cosmetic Act, and other cells and tissues are regulated for communicable diseases under the PHS Act. FDA's goals with regard to human tissues are to: One, prevent the spread of communicable disease; two, to ensure the safety and efficacy is demonstrated for cellular and tissue- based products; and finally, enhance public confidence in these products. FDA plans to accomplish these goals through implementing regulations in a manner that will not discourage the development of new products. Human tissues for transplantation include skin replacement for severe burns, tendons and ligaments for injury repair, and corneas to restore eyesight, as well as bone for replacement. The increased use of human tissues has heightened public awareness of the need for appropriate regulation to minimize potential risks. Developments in the 1980's and 1990's prompted FDA to examine our approach to the regulation of tissue. Several incidents illustrated the risks of disease transmission when adequate precautions were not taken. In 1991, it was discovered that seven people had been infected with human immunodeficiency virus through the transplantation of organs and some tissue from a donor who tested negative for HIV. This led to intense discussions within the tissue bank community and the Public Health Service on how to reduce the risk of infectious diseases from transplanted human tissues, and ultimately to the comprehensive approach that I will describe. In 1993, FDA learned that human tissue from foreign sources was being offered for sale in the United States with little or no documentation of the source. There was little, if any, information on the medical condition of the donor, the cause of the donor's death, or the results of donor screening and testing. This raised significant concerns about the safety and quality of that tissue. The agency quickly confirmed that the tissue was not adequately screened and tested for infectious diseases. The agency acted promptly by promulgating a regulation and exercising its enforcement powers. In December 1993, FDA took action to minimize the risk of disease by issuing an interim rule for human tissue for transplantation, which required donor screening, infectious disease testing, and recordkeeping to prevent the transmission of infectious disease. Under this regulation, FDA could also conduct inspections, and when necessary, could order tissue to be detained, recalled, or destroyed. This interim rule was made final, with some modification, on July 29, 1997. After careful consideration of the health issues and extensive public discussion, FDA published the proposed approach to the regulation of cellular and tissue-based products in 1997. This document described FDA's planned regulatory framework for human cellular and tissue-based product regulation. Subsequently, FDA has accomplished many of the regulatory goals described in the February 1997 document through publication of a series of proposed and final rules. The 1997 proposed approach provided a framework for the regulation of both traditional and new products. This framework detailed the type of regulation necessary to protect the public health and provide a risk-based tiered approach to cell and tissue regulation. For human cells and tissue products where the risk is limited to disease transmission, FDA's proposed regulation is intended to prevent transmission of disease through the use of these products. For products that pose greater risk, the framework additionally provides for pre- market review and approval of product applications. To accomplish the implementation of the proposed approach, the agency developed a tissue action plan that contained a description of the steps and time frames the agency would use. Many of these steps have already been accomplished, including a final registration and listing rule and the proposed rules on donor suitability and good tissue practices. The registration and listing rule requires establishments to register and list with the agency their human cell tissues and cellular and tissue-based products. Under this final rule, establishments engaged in the recovery, screening, testing, processing, storage, or distribution of tissues, with conventional tissues such as bones, skin, and corneas, are required to register and list their products. Other establishments that manufacture nonconventional or new cellular and tissue-based products, such as hematopoietic stem cells, are required to register and list by January 2003, although I might add that they can register voluntarily now. In September 1999, FDA published a proposed rule regarding the donor suitability for cellular and tissue-based product. Disease agents, such as HIV, hepatitis B virus, hepatitis C virus, syphilis, and CJD have been detected in human tissue. The proposed rule, when final, will expand current screening and testing requirements to include donor screening for CJD and donor testing for syphilis and would apply broadly to cellular and tissue-based products. A donor who tested repeatedly reactive for a particular disease agent or who posed clinical evidence of or had risk factors for such a disease will be considered unsuitable and cells or tissues from that donor will not ordinarily be used. The agency is currently reviewing public comments on the proposed rule. Tissue establishments perform various procedures that may affect the safety or quality of tissue products. Therefore, in January of this year, FDA published a proposed rule for good tissue practices for manufacturers of human cellular and tissue-based products. With this proposed rule, FDA completed the set of proposals that, when finalized, implement the new regulatory framework. The proposed rule will require manufacturers to follow good tissue practices, which include practices involving methods, facilities, and controls used in tissue manufacturing, tracking, process validation, and the establishment of a quality program. FDA is in the progress of carefully reviewing all comments received in response to this proposed rule. In 2002, FDA estimates that the agency will dedicate $4.35 million to the regulation of human tissue. This is part of the President's Fiscal Year 2001 budget request for FDA, which represents a 10 percent increase for the agency over the Fiscal Year 2000 level. Estimates of the implementation of the tissue regulation will be developed as part of the 2003 budget process and may be revised as we garner additional information for future establishment registrations. Such additional information will help us determine with greater accuracy the amount of time and resources that will be needed to conduct inspections and other compliance-related activities. FDA conducts on-site inspections of tissue establishments to determine compliance with FDA regulations. As a result of these inspections, FDA has taken the following actions: Fifteen orders for retention or recall, six warning letters, and nine opportunities for voluntary corrective action letters. Further, the number of voluntary recalls of banked human tissue have increased over the past 7 years, from approximately three in 1994 to 24 in the year 2000. FDA is concerned about pooling of tissues from multiple donors during processing. In general, FDA believes that the risks associated with pooling tissues from multiple donors at this time appears to outweigh any identified medical benefits. Risks include possible exposure and cross-contamination from one tissue to another, such infectious disease agents as viruses, bacteria, fungi, and prions. FDA currently can address these issues based on our communicable disease provisions of Section 361 of the Public Health Service Act. In order to successfully implement agency plans for the regulation of human tissues, FDA has involved tissue establishments and medical professionals in many of our public discussions. In the future, FDA intends to provide opportunity for additional public discussions on issues related to cellular and tissue-based products. FDA can assure the Subcommittee that we are committed to establishing a regulatory framework which will not only help ensure the safe use of human tissue for transplantation, but also allows the development of this technology and instills public confidence. While FDA has taken many steps towards this end, we realize that more remains to be done. We look forward to working with this Subcommittee regarding the regulation of tissues and I am happy to answer any questions you may have today. Senator Collins. Thank you, Dr. Zoon. I want to talk to you further about two issues that have arisen today. One is pooling, the other is repeat testing. You mentioned in your statement that you have just concluded that the FDA believes that the risks of pooling outweigh the benefits. Could you explain further why pooling could be problematic from a safety standpoint? Ms. Zoon. Yes, I would be happy to. When you pool products, if there is just one component of a mixture of components, that component could have the ability to raise the infectious disease or communicable disease risk to the entire batch of product processed together, and that is why we are concerned about this. It is very important in those considerations to make sure that risks such as this are minimized. Senator Collins. So it is a cross-contamination issue? Ms. Zoon. That is correct. Senator Collins. The FDA has recently proposed regulations that would require tissue banks to employ specific good tissue practices. As part of those good tissue practices, has the FDA banned pooling or prohibited pooling? Ms. Zoon. The current proposed regulation states that the agency does not permit pooling, although it does give an opportunity for exemption or a waiver for this if one can validate that their procedure would inactivate certain infectious agents. Senator Collins. With regard to repeat testing, we have heard very disturbing testimony today from the Office of the Inspector General that some tissue banks, when they do not like the first result that they get on a batch of tissues, they just keep testing it in the hopes of getting the all-clear result. That, to me, is just incredible and totally unacceptable. Has the FDA proposed anything that would deal with that issue? Ms. Zoon. Yes. You cannot test a piece of tissue into compliance. Senator Collins. That is a good way to put it. Is there any specific regulation, though, or part of the good tissue practices that speaks to that issue? Ms. Zoon. Yes. Under our current regulation, which is the 1997 final rule on tissue, that addresses at least this issue with respect to HIV and hepatitis B and hepatitis C, and the same would be true with respect to the donor suitability proposed regulation that would expand the infectious agent testing. But that provision is true. You cannot test a piece of tissue into compliance. Senator Collins. Dr. Zoon, if you find that a tissue bank is engaged in these questionable practices, does the FDA have the authority to prohibit the tissue bank from operating? Ms. Zoon. Well, we have the authority--under our current regulation, we can deal with the products. In the proposed regulation, it also allows the agency to deal with the establishment itself. Senator Collins. We had testimony today from the private accreditation association AATB in which I asked the CEO whether or not there is any reporting from the AATB when they revoke an accreditation, whether that information is conveyed to the FDA, because, clearly, there is a serious problem with a tissue bank if it loses its accreditation. Now, I recognize that there is a difficult balance here because the accreditation is voluntary and we want, presumably, to encourage more tissue banks to become accredited. But it seems to me that once a tissue bank is accredited, if the AATB finds grounds that are serious enough that causes the Association to revoke its accreditation, that there should be some sort of report to the FDA. Would you agree, or what would your views be on that? Ms. Zoon. Well, certainly, if the AATB wanted to provide that information to the agency, the agency would certainly look at that information and weigh that in on terms of prioritizing some of our inspectional proceedings. Senator Collins. Would it be helpful for you to get that information? Would it be a red flag to you that perhaps you need to send an FDA inspector in? The problem here is AATB may discover a problem way before the FDA does, yet AATB's revocation of accreditation does not do anything to prevent that tissue bank from operating, whereas the FDA has the ability to stop the tissue bank from operating. Ms. Zoon. Right. Well, we would welcome any information that could and would help facilitate our jobs. Senator Collins. Let me talk to you a bit more about the FDA's inspection process. According to the HHS Inspector General, FDA performed 188 inspections which identified 98 problems and they resulted in 26 notices of official action. There were also 72 notices calling for voluntary corrective action. Could you explain to us what a notice of official action is and how serious that is on the scale of approaches or responses that the FDA could take? Ms. Zoon. Right. Well, there are three levels of evaluation of an inspection. One is the one you would hope for, which is no action indicated, and that is called NAI. And then you have a voluntary action indicated, which means that there were observations of concern that required the particular sponsor to take corrective action on their own in order to facilitate remedying these, and these would be checked as follow-up on the next inspection and they would address those issues to the agency in the interim. OAI is the most serious classification of an inspection. It means official action indicated. And generally, this can result in a number of things. The most normal follow-up from something like this might be a warning letter that the agency would then issue to the company in which this was observed. They would need to respond to this, as well. Senator Collins. Could you give us some examples of the kinds of violations that would trigger a notice of official action? Ms. Zoon. Yes. Improper infectious disease testing and issues related to quarantining tissues that might lead to increased risk of improperly using those tissues. Those are two examples. There could be many others, depending on the proper screening of a particular tissue. As you know, most of our regulations and issues are focused on communicable disease testing. So really those things that would increase the risk of infectious disease transmission would be the things that we would focus on. Senator Collins. So these are pretty serious violations that could pose a significant threat to public health or to at least the recipient of the donated tissue, is that a fair assessment? Ms. Zoon. Yes. Senator Collins. You mentioned that FDA has included a 10 percent budget increase to assist with tissue inspections and your expanded regulatory process. Given the large number of tissue banks that have registered with FDA, which, based on our conversations with FDA and other experts, exceeded what was expected, do you believe that the FDA can conduct adequate inspections of these tissue banks? Ms. Zoon. Well, as you know, there is not enough resources to inspect tissue banks biennially, which is where ultimately we would like to be, and we have diverted some of our blood and plasma inspectional resources to do some of the tissue inspections that we are currently doing today. So we are trying to balance many responsibilities to do the best job we possibly can. And in order to do this, we really have developed a risk- based strategy for doing tissue inspections, so those that we believe are the highest risk get the most attention and those with the lower risk are not. So the risk strategy that we are currently using are those banks that have had a violative inspection have the highest priority. The next-highest priority are those which are tissue banks that have not been accredited and have not been inspected yet. Then the next level is the laboratories that actually do the infectious disease testing of these. And then it goes down to those tissue banks that have voluntary action indicated, and then tissue banks that are accredited and not inspected, and then finally the last tier is those banks that have not had problems. Senator Collins. The problem is, it is difficult for you to set those priorities and say that the last tier are tissue banks that have not had problems when nobody even realized that there were so many tissue banks out there, and when scores and scores of tissue banks, perhaps 100 tissue banks, have never been inspected or regulated by anybody. So how can you tell that there are no problems? I mean, unless you have a plan to inspect every tissue bank once every 2 years or once every 3 years, how can you conclude that--how can you even rank them? Ms. Zoon. Well, no. The ranking was based on--your point is well taken, that you would like to have the database of having biennial inspections for a while. But with the existing resources, we wanted to use our resources most wisely to make sure that when we have a problem--and I forgot to mention, the second priority is actually for-cause inspections. I misspoke in the previous one. So the first is those with violative. The second is for cause, where that means we get a report from somebody who says that there is a problem in a particular bank so we can respond to that. But your point is that with the registration and listing rule, we will now have the opportunity to have actually an inventory of what is out there, so now we will be in a position to finish the inspections of those banks that we have never inspected that are now registered. Our goal for this fiscal year is to do the remaining banks that were identified by the IG that had not been looked at by the FDA and any other banks we may find from the registration and listing provisions that have not yet been inspected by the FDA. So those are our two areas where we are really going to focus. Senator Collins. The problem is that OIG identified 118 banks that have been inspected, if memory serves me correctly. OIG thought that the total universe was about 150. We now know it is about 350. It is over double what anyone expected. It seems to me until you have a plan to inspect every one of those 350 tissue banks, that it is just a shot in the dark. It is just throwing darts as far as trying to figure out what are the high-risk tissue banks. Ms. Zoon. I might just make a comment that the 368 registered components actually includes each location of a tissue bank. So if a tissue bank has more than one location, it will register based on the number of locations. So I just want to make sure, some of those numbers--and there is also, if there are distributors or procurers, they will have to list separately and register separately. So when we use the term tissue banks, we need to be a little bit careful because there may be multiple locations in some of these, and I just thought I would point that out, so the numbers may not be as off as they might indicate. Senator Collins. It still strikes me that is an enormous undertaking for FDA and yet an absolutely critical one in terms of protecting the public health and also in ensuring that the families of potential donors feel comfortable about donating tissue and do not experience some of the problems that we have heard today that are very disturbing. Ms. Zoon. I think we would agree that we believe this is an important part of our program, and I think the inspectional programs have been extremely valuable in helping us deal with the scope of issues with respect to the tissue banks that are important to the Congress. Senator Collins. I want to just ask you about one specific inspection that led to a warning letter, and it is going to be Exhibit 2 \1\ in your book, also the notebook that is right there should have it. I will give you a moment to find it. --------------------------------------------------------------------------- \1\ See Exhibit No. 2 which appears in the Appendix on page 112. --------------------------------------------------------------------------- [Pause.] Senator Collins. It is a warning letter that the FDA sent to a particular tissue bank, Pacific Coast Tissue Bank, on April 21 of last year. The letter documents Pacific Coast's failure to develop and follow written operating procedures, its failure to ensure proper donor testing, its failure to maintain complete records. In this letter, the FDA also sets out its disagreements with Pacific Coast's response to a prior letter and requests that the tissue bank notify FDA of the corrective measures it will take to prevent a recurrence of similar violations. What worries me about this case is it seems to me that this tissue bank has been found wanting on very serious grounds, such that this is the second letter that the FDA has had to send to this particular tissue bank. Could you tell me if the FDA has inspected Pacific Coast Tissue Bank for compliance since this letter was sent in April 2000? Ms. Zoon. I am aware that the FDA will be inspecting Pacific Coast Tissue Bank this year, and it is inappropriate for me to tell you when in public. Senator Collins. I can understand that. But what concerns me is it is over a year later and we do not have any guarantees that this tissue bank has corrected some very serious deficiencies that the FDA inspection identified. What process does the FDA use to make sure that serious problems are remedied? Ms. Zoon. There are several. The company must respond to the warning letter, so that information comes back to the agency for review, and certainly the response of that will be evaluated and looked at, and any follow-up issues, such as the issues pointed out in this warning letter, will have direct follow-up with respect to the Pacific Coast Tissue Bank on their next inspection. So then there can be a series of other actions that the agency can take with respect to this particular company and we will be looking into our options, depending on the finding. Senator Collins. One final question on behalf of Senator Durbin, who is unable to attend this part of the hearing. Senator Durbin sent a letter in January to Dr. Henney, who I realize is no longer Commissioner, but asking for a breakdown of costs for implementation of the new rules.\1\ Are you familiar with that letter? --------------------------------------------------------------------------- \1\ See Exhibit No. 2 which appears in the Appendix on page 112. --------------------------------------------------------------------------- Ms. Zoon. Yes, I am. Senator Collins. Has the FDA responded to that request? Ms. Zoon. The FDA has prepared a response to that request. It has been cleared by the FDA and now it is being reviewed within the Department. Senator Collins. I would ask that you share that request with the Subcommittee.\2\ --------------------------------------------------------------------------- \2\ As of July 2001, the Subcommittee staff was informed by the Food and Drug Administratoin that the response letter to Senator Durbin's January 2001 letter, has not yet been cleared for external release by the Department of Health and Human Services. --------------------------------------------------------------------------- In closing, I just want to encourage you, if you need more resources to make sure that our Nation's tissue supply is safe, you should ask for them. We know that this is a big task. We know that there are far more tissue banks than ever was anticipated, that the registration process would bring forth, and there is a certain frustration on the part of the Members of this Subcommittee that the FDA has been very slow in acting in this area. If we want to increase the supply of tissue, and that is a goal that many of us share, of encouraging more donations for life-enhancing procedures, we need to make sure that we can both assure the public that the donated tissue will be treated with dignity and respect, and also that it is safe for the recipient. And until we have a vigorous regulatory structure in place, I do not think we can make those assurances, and that is troubling to me because I want to see this very positive trend of more tissue and organ donations increase. So we look forward to working with you and making sure that you have the support that you need. I would also ask that you provide the Subcommittee in writing any suggestions for legislative changes that you might have. We have heard a number of suggestions this morning, of making the law more similar to that for organ donation, and we would welcome your suggestions. Ms. Zoon. Thank you very much. Senator Collins. Thank you. I want to thank all of our witnesses for coming today and sharing their perspectives on the tissue bank industry and the adequacy of Federal regulatory oversight. We entitled this hearing, ``Tissue Banks: Is the Federal Government's Oversight Adequate?'' and based on what I have heard today, I think the answer to that question is no, that it is improving, that the new regulations are going to make a big difference, but until we match the new regulations with an aggressive inspection process and until we in Congress work with the administration to provide the resources necessary, it appears to me that there are still going to be holes in the safety net of regulation. I especially want to thank the Health and Human Services Office of Inspector General for its very comprehensive and helpful reports, which have shed some light on the state of the tissue bank industry and which formed the starting point for our discussions today. But the testimony of all of our witnesses has been extremely helpful. I finally would like to thank the Members of my Subcommittee staff who have helped prepare for these hearings, especially Claire Barnard, Barbara Cohoon, Eileen Fisher, Chris Ford, and Mary Robertson. They have worked very hard on this area. Thank you. The Subcommittee is adjourned. 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