Joseph N. DiStefano: UPS, AmerisourceBergen plan drone drug and device delivery, replacing couriers - Insurance News | InsuranceNewsNet

InsuranceNewsNet — Your Industry. One Source.™

Sign in
  • Subscribe
  • About
  • Advertise
  • Contact
Home Now reading Newswires
Topics
    • Advisor News
    • Annuity Index
    • Annuity News
    • Companies
    • Earnings
    • Fiduciary
    • From the Field: Expert Insights
    • Health/Employee Benefits
    • Insurance & Financial Fraud
    • INN Magazine
    • Insiders Only
    • Life Insurance News
    • Newswires
    • Property and Casualty
    • Regulation News
    • Sponsored Articles
    • Washington Wire
    • Videos
    • ———
    • About
    • Meet our Editorial Staff
    • Advertise
    • Contact
    • Newsletters
  • Exclusives
  • NewsWires
  • Magazine
  • Newsletters
Sign in or register to be an INNsider.
  • AdvisorNews
  • Annuity News
  • Companies
  • Earnings
  • Fiduciary
  • Health/Employee Benefits
  • Insurance & Financial Fraud
  • INN Exclusives
  • INN Magazine
  • Insurtech
  • Life Insurance News
  • Newswires
  • Property and Casualty
  • Regulation News
  • Sponsored Articles
  • Video
  • Washington Wire
  • Life Insurance
  • Annuities
  • Advisor
  • Health/Benefits
  • Property & Casualty
  • Insurtech
  • About
  • Advertise
  • Contact
  • Editorial Staff

Get Social

  • Facebook
  • X
  • LinkedIn
Newswires
Newswires RSS Get our newsletter
Order Prints
October 22, 2019 Newswires
Share
Share
Post
Email

Joseph N. DiStefano: UPS, AmerisourceBergen plan drone drug and device delivery, replacing couriers

Philadelphia Inquirer (PA)

Oct. 22--United Parcel Service, the Atlanta-based shipping giant, and AmerisourceBergen, the Chesterbrook-based drug distributor, are working together to use UPS' new Flight Forward "drone airline" to ship drugs and supplies to hospitals through small, unmanned aircraft across the U.S.

UPS announced it was already using drones in North Carolina and would soon start employing them in Utah. While the company has no immediate plans in Philadelphia, it plans a national rollout soon.

The pieces were falling in place Monday when UPS said the Federal Aviation Administration has approved the drone service to fly beyond its operators' direct line of vision. The company is speeding plans to start deliveries to hospitals and other service providers.

The company is also planning new health-care support locations. A UPS source and a construction source say the company has been in discussions over a Northeast Philadelphia property on Red Lion Road formerly used by Budd Co. and considered by drugmaker Teva for a warehouse compound, now that UPS has begun considering more urban sites.

Labor supply has become a more important issue for UPS and other warehouse operators as the unemployment rate drops. But UPS and the site's owners say no decision has been reached.

The company said Thursday that it is consolidating its fast-growing medical-services units and brands into a new business group, UPS Healthcare and Life Sciences, which will employ 5,000 of UPS' 362,000 U.S. staff. The company also employs about 80,000 abroad.

UPS and Amerisource want to use "unmanned aviation" to replace ground courier vehicle contractors "to transport the majority of medical products." These would be items moving from Amerisource's distribution centers -- such as the one in West Deptford Township, across the Delaware River from South Philadelphia -- to hospitals, doctors' offices, pharmacies, nursing homes, and other locations, the companies said in a statement.

Along with reducing reliance on UPS contracted couriers, the companies hope UPS drones will avoid road traffic and drop costs. Scott Price, UPS chief transformation officer, said drone delivery will be faster. Amerisource says it serves 95% of U.S. hospitals through its centers in Thorofare and 26 other cities.

"Emerging technologies" such as drones "will improve supply chain efficiences," said Steve Collis, chairman and chief executive officer at AmerisourceBergen, in a statement. Working with UPS will help the company's clients, he added. (Updated)

UPS said it has started working with drone-maker Matternet to test flying specimens and instruments at the University of Utah Health campus in Salt Lake City. UPS said it has already flown more than 1,500 flights using Matternet drones around the WakeMed Hospital campus in North Carolina.

The company will also work with CVS Health, which runs one of the largest U.S. pharmacy and drug distribution networks, to develop drone delivery plans, including potential service to patients' homes.

UPS moves drugs and medical devices through a specialized warehouse network, including facilities near Swedesboro and Pedricktown totaling half a million square feet, a short drive south of AmerisourceBergen's West Deptford center.

At Swedesboro, manufacturers such as Medtronic stock many thousands of items for rapid dispatch. "Swedesboro is within 200 miles of 400 hospitals," said Dan Gagnon, UPS vice president for health care logistics and strategy.

Couriers are dispatched at all hours. A force of around 80 nonunion workers, earning $13 to $15 an hour, spend their days maintaining inventory in towering storage stacks and rechecking surgical stent kits, replacement knees, and other complex packages for delivery as needed in Philadelphia operating rooms. That's where Medtronic and other manufacturers station representatives who order additional parts from UPS as needed.

UPS officials said they are helping manufacturers require doctors and hospitals to accept standardized products and procedure kits, using methods that have driven down costs in other industries. "Problems we solved 20 years ago in high-tech, we are solving now in [health-care] logistics," said David O'Leary, UPS vice president for logistics and distribution on a visit to the Swedesboro center earlier this month.

Health-care costs have been rising faster than median incomes for more than 20 years. "It's unsustainable," said Gagnon. "And chronic diseases have been growing -- cancer, respiratory, cardiac, diabetes. Innovation in health care has extended these patients' lives. If you get these diseases, you may live another 40 years" as medicine advances.

More treatment has meant much higher costs, due to a "fragmented" supply chain drawing doctors' favored products from many sources -- because "clinicians, not logisticians, have been running health care," Gagnon said.

That's ripe to change: "Consumers now expect health care to be as convenient as other products," and UPS says its flying delivery machines, backed by specialized warehouses, will make that happen.

___

(c)2019 The Philadelphia Inquirer

Visit The Philadelphia Inquirer at www.inquirer.com

Distributed by Tribune Content Agency, LLC.

Older

CLARA analytics Appoints Paul Kim as Chief Medical Officer

Newer

Centene Corporation Elects General Lori J. Robinson To Board Of Directors

Advisor News

  • The modern advisor: Merging income, insurance, and investments
  • Financial shocks, caregiving gaps and inflation pressures persist
  • Americans unprepared for increased longevity
  • More investors will seek comprehensive financial planning
  • Midlife planning for women: why it matters and how advisors should adapt
More Advisor News

Annuity News

  • LIMRA: Annuity sales notch 10th consecutive $100B+ quarter
  • AIG to sell remaining shares in Corebridge Financial
  • Corebridge Financial, Equitable Holdings post Q1 earnings as merger looms
  • AM Best Assigns Credit Ratings to Calix Re Limited
  • Transamerica introduces new RILA with optional income features
More Annuity News

Health/Employee Benefits News

  • SENATE APPROVES BILL TO LIMIT PREMIUM INCREASES, PROTECT ACCESS TO HEALTHCARE
  • All about AHCCCS: Navigating Arizona Medicaid’s changing landscape
  • GOVERNOR SIGNS BIOMARKER TESTING COVERAGE BILL
  • REGULATION OF AI IN PRIOR AUTHORIZATION AND CLAIMS REVIEW: A LOOK AT FEDERAL AND STATE CONSUMER PROTECTIONS
  • LEADING HEALTH ORGANIZATIONS URGE NC LAWMAKERS TO RECONSIDER PROPOSAL IMPLEMENTING MEDICAID CUTS
More Health/Employee Benefits News

Life Insurance News

  • 2025 Insurance Abstracts
  • AM Best Assigns Credit Ratings to Tokio Marine Newa Insurance Co., Ltd.
  • Earnings roundup: Prudential works to save ‘unique’ Japanese market
  • How life insurance became a living-benefits strategy
  • Financial Focus : Keep your beneficiary choices up to date
More Life Insurance News

- Presented By -

NEWS INSIDE

  • Companies
  • Earnings
  • Economic News
  • INN Magazine
  • Insurtech News
  • Newswires Feed
  • Regulation News
  • Washington Wire
  • Videos

FEATURED OFFERS

Why Blend in When You Can Make a Splash?
Pacific Life’s registered index-linked annuity offers what many love about RILAs—plus more!

Life moves fast. Your BGA should, too.
Stay ahead with Modern Life's AI-powered tech and expert support.

Bring a Real FIA Case. Leave Ready to Close.
A practical working session for agents who want a clearer, repeatable sales process.

Discipline Over Headline Rates
Discover a disciplined strategy built for consistency, transparency, and long-term value.

Inside the Evolution of Index-Linked Investing
Hear from top issuers and allocators driving growth in index-linked solutions.

Press Releases

  • Sequent Planning Recognized on USA TODAY’s Best Financial Advisory Firms 2026 List
  • Highland Capital Brokerage Acquires Premier Financial, Inc.
  • ePIC Services Company Joins wealth.com on Featured Panel at PEAK Brokerage Services’ SPARK! Event, Signaling a Shift in How Advisors Deliver Estate and Legacy Planning
  • Hexure Offers Real-Time Case Status Visibility and Enhanced Post-Issue Servicing in FireLight Through Expanded DTCC Partnership
  • RFP #T01325
More Press Releases > Add Your Press Release >

How to Write For InsuranceNewsNet

Find out how you can submit content for publishing on our website.
View Guidelines

Topics

  • Advisor News
  • Annuity Index
  • Annuity News
  • Companies
  • Earnings
  • Fiduciary
  • From the Field: Expert Insights
  • Health/Employee Benefits
  • Insurance & Financial Fraud
  • INN Magazine
  • Insiders Only
  • Life Insurance News
  • Newswires
  • Property and Casualty
  • Regulation News
  • Sponsored Articles
  • Washington Wire
  • Videos
  • ———
  • About
  • Meet our Editorial Staff
  • Advertise
  • Contact
  • Newsletters

Top Sections

  • AdvisorNews
  • Annuity News
  • Health/Employee Benefits News
  • InsuranceNewsNet Magazine
  • Life Insurance News
  • Property and Casualty News
  • Washington Wire

Our Company

  • About
  • Advertise
  • Contact
  • Meet our Editorial Staff
  • Magazine Subscription
  • Write for INN

Sign up for our FREE e-Newsletter!

Get breaking news, exclusive stories, and money- making insights straight into your inbox.

select Newsletter Options
Facebook Linkedin Twitter
© 2026 InsuranceNewsNet.com, Inc. All rights reserved.
  • Terms & Conditions
  • Privacy Policy
  • InsuranceNewsNet Magazine

Sign in with your Insider Pro Account

Not registered? Become an Insider Pro.
Insurance News | InsuranceNewsNet