OhioHealth Corp. plans to launch a fleet of drones ferrying drugs, lab tests and supplies next year with a San Francisco unicorn operating the world's largest autonomous delivery service.
Zipline International Inc. will deploy its second-generation technology that replaces the company's parachute drops with tethered "droids" dropping off packages on a target as small as a patio table.
“Zipline drone delivery provides a great alternative for OhioHealth as we look to grow our home infusion and specialty pharmacy home delivery services," Charles McCluskey III, the system's vice president of pharmacy services, said in a news release. "It gets products to patients more quickly and at a lower cost, and uses less carbon-intensive packing materials compared to our traditional delivery methods."
The cost of the contract is not disclosed. OhioHealth said it would not charge patients for deliveries.
Central Ohio's largest health system and Zipline are working toward a launch next year, following community outreach. The first phase would be deliveries between OhioHealth facilities, with deliveries to as many as 2 million patients rolling out in 2025.
Zipline received nationwide certification from the Federal Aviation Administration in June 2022 to make autonomous deliveries out of sight range of a human operator, at the longest range over the widest territory of any drone system yet.
The company has made more than 700,000 commercial deliveries to date. It started operations in five African nations. It started deliveries with Walmart in Arkansas in 2021 and Salt Lake City-based Intermountain Healthcare last year.
Last year Dublin-based Cardinal Health Inc. and a Charlotte, North Carolina-area hospital system began long-range Zipline deliveries directly to patient homes; the agreement had been in the works since 2021. The test program is complete and Cardinal is analyzing data, a spokesman said via email.
Zipline has recently announced deals with the University of Michigan's health system and a pizza place in Seattle.
The South San Francisco company closed a $330 million Series F round in May that increased its valuation to $4.2 billion, according to Forbes magazine.
Zipline's first drone system dropped packages with parachutes, able to deliver up to 5 pounds within a 60-mile radius. This spring it debuted Platform 2, or P2, in which the drone lowers a droid via tether for more precise targeting. The package is loaded through a top door on the droid, and once on the ground it opens a lower hatch to deposit it gently. The capacity is up to 8 pounds of cargo in a 10-mile radius.
OhioHealth's first drone deployment will significantly cut processing time for lab samples and diagnostic tests, Joshua Dritz, senior director of logistics and sterile processing, said in the release. The system will seek more ways to use drones to quickly move supplies and equipment between facilities.
With 14 hospitals, OhioHealth had operating income of $342 million on record revenue of $5.4 billion in the year ended June 30, 2022, according to its audit.
Zipline's measurements indicate the all-electric system reduces emissions by up to 97% compared with vehicle delivery – and is up to seven times faster. The drones fly about 300 feet above ground and are nearly inaudible.
“That time savings is invaluable at every stage of the healthcare journey and can mean that people get diagnosed and treated faster, leading to better health outcomes,” Hillary Brendzel, head of Zipline’s U.S. Healthcare Practice, said in the release. “Our service is sustainable, reliable, and already proven to improve people’s health and save lives."
The company's operations in Rwanda reduced waste of blood and blood components due to expiration by 67%, according to a study last year in the journal Lancet.
The San Francisco company is not related to Columbus-based Zipline Logistics LLC, a third-party logistics provider – for ground transportation – that has been among Central Ohio's fastest-growing private companies for a dozen years.
