Why practices are leaving Stericycle
The $295M class-action settlement (2024)
Stericycle settled a class-action lawsuit for $295 million in 2024 over automated price increases imposed on small-business customers in violation of contract terms. The case revealed roughly 12 years of systematic overcharging. WM inherited this liability with the acquisition.
The Waste Management acquisition
WM bought Stericycle for $7.2 billion in late 2024. The combined entity operates as WM Healthcare Solutions, but pricing structure, contracts, and route operations are largely unchanged. Practices hoping for better pricing under new ownership have not seen it.
40-60% of the bill is junk fees
Typical Stericycle/WM invoice: base service is 40-50% of the total; the rest is fuel surcharges (7-15%), environmental fees, energy recovery fees, regulatory compliance fees, "service cost recovery" (Stericycle's well-known 6.8% margin add-on), container rental, and stop charges. Regional operators typically charge none of these or roll them into the base rate.
Auto-renewing 5-year contracts
Most Stericycle contracts auto-renew unless cancellation notice is given 60-90 days before the contract end date. Most practices miss this window and lock into another multi-year term. Built-in annual rate increases of 8-20% compound the cost.