If you are asking the question: "How does this private market solution solve the problem of government/education/medical bureaucracy being inefficient," then I guess it does not solve the root cause. But trying to solve IRB problems involving that three-headed hydra is not likely to succeed. Going around the system is a feasible workaround.
Implementing a terrible process faster at great cost is not the same thing as solving the problem, nor is it the best possible solution short of "fix all bureaucracy".
If you are asking the question: "How does this private market solution solve the problem of government/education/medical bureaucracy being inefficient," then I guess it does not solve the root cause. But trying to solve IRB problems involving that three-headed hydra is not likely to succeed. Going around the system is a feasible workaround.