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Stericycle

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Stericycle, Inc.
Company typeSubsidiary
IndustryServices: compliant regulated waste disposal, secure information destruction services, recall services, sustainability services, communications services
Founded1989; 36 years ago (1989)
Headquarters
Bannockburn, Illinois
,
U.S.
RevenueUS$2.66 billion (2023)[1]
US$77.3 million - AOI US$315.5 million (2023)[1]
Total assetsUS$5.35 billion (2023)[1]
Total equityUS$2.52 billion (2023)[1]
Number of employees
23,200[2] (2017)
ParentWaste Management, Inc.
Websitestericycle.com
A Stericycle truck

Stericycle, Inc. is an American compliance company that specializes in collecting and disposing regulated medical waste, such as medical waste and sharps, pharmaceuticals, hazardous waste, and providing services for recalled and expired goods. It also provides related education and training services, and patient communication services. The company was founded in 1989 and is headquartered in Bannockburn, Illinois, with many more bases of operation around the world, including Medical waste incinerators in Utah and North Carolina.

Stericycle was publicly traded on the NASDAQ starting in 1996,[3] until Waste Management acquired the company in 2024.[4]

Overview

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Stericycle, Inc., together with its subsidiaries, offers regulated waste management services, sharps disposal containers to reduce the risk of needlestick injuries, healthcare compliance services, and drug disposal services. In addition, with the acquisition of Shred-it in 2015, Stericycle also offers secure information destruction services including document shredding and hard drive destruction.

The company serves healthcare facilities such as hospitals, blood banks, and pharmaceutical manufacturers. Stericycle also serves myriad small businesses, which include outpatient clinics, medical and dental offices, abortion clinics, veterinary and animal hospitals, funeral homes, home healthcare agencies, body art studios, and long-term and sub-acute care facilities. Medical device manufacturers, consumer goods manufacturers, and retailers are also key customers.

Stericycle has been harshly criticized by residents living near their incinerators and environmentalists across the globe.[5] In 2018, Stericycle was investigated by the state of Utah for burning hazardous, radioactive[6] waste above legal levels at their North Salt Lake location. The investigations also are in response to Stericycle's alleged falsification of records to hide the alleged illegal quantity burning near Foxboro Elementary in North Salt Lake.[7][8][9]

International operations

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Stericycle has a presence in 10 countries. Approximately 10% of the company's revenue comes from its international operations. Full services are offered the U.S., Canada, Ireland, and Spain. Stericycle offers all services, except for hazardous waste management, in the United Kingdom and Portugal. Only secure information destruction services are provided in Austria, Belgium, France, Germany, the Netherlands, and Luxembourg.

Stericycle no longer operates in Argentina, Brazil, Chile, Japan, Mexico, Australia, South Korea, Romania, United Arab Emirates, and Singapore.

History

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Stericycle was founded in 1989 by Dr. James Sharp based on his business plan to address the Syringe Tide, where hypodermic needles and other medical waste washed up to the shores of New York and New Jersey. The Syringe Tide led to the Medical Waste Tracking Act, signed in 1988, establishing regulated medical waste management as an industry.[10]

In 1992, Mark Miller stepped in as President and CEO, and as a result of Miller's leadership, Stericycle grew rapidly, going public in 1996 on the NASDAQ (ticker SRCL). Stericycle began to expand internationally in 1998, starting with Mexico and Canada. (4) In 1999, Stericycle acquired 200,000 customers from Allied Waste Industries after Allied acquired Browning Ferris Industries.[11][12]

The company's international business began in 1997 with a joint venture in Mexico. Since then, Stericycle has created services, tools and resources for healthcare professionals not only in the United States and Mexico, but also in Argentina, Brazil, Canada, Chile, Ireland, Japan, Portugal, Puerto Rico, Romania, Spain, and the United Kingdom.

In 1999, Stericycle began offering safety and medical compliance training services with the launch of its Stericycle Steri-Safe OSHA Compliance program.

Expansion

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In the 2000s, Stericycle achieved growth through launching and/or acquiring complementary business lines, as well as continued international expansion. In 2003, Stericycle entered sharps waste management, acquiring Scherer Healthcare's existing practice and occasionally referring to parts of the service as “Bio Systems” in markets like Ireland.[13][14] In 2004, Stericycle began providing medical waste disposal solutions[clarification needed] in the United Kingdom with more international growth following.[15] In 2008, Stericycle acquired its first hazardous waste removal company and in 2010 started its Communications Solutions business line with the acquisition of NotifyMD, among several other acquisitions. The acquisition of PSC Environmental Solutions in 2014 in a deal worth $275 million led to the formal establishment of Stericycle Environmental Solutions focused on hazardous waste.[16][17] Finally, Stericycle's largest acquisition to date, Shred-it, occurred in 2015, for US$2.3 billion.[18][19]

The company lost a contract to provide clinical waste services to GPs and pharmacies in Cumbria and north-east England in April 2017, when their competitor, Healthcare Environment Services put in a substantially cheaper offer, of £310,000, than theirs of £479,999. Stericycle then initiated a legal challenge against NHS England’s decision which was dismissed by the High Court of Justice in July 2018, and the company's behaviour severely criticised. Their commercial director Lindsay Dransfield was described as “a broadly unsatisfactory witness”.[20] A confidential settlement was reached in 2019, ending the litigation.[21]

Beyond services related to healthcare wastes, in some markets the company has expanded its offerings to include management of certain hazardous wastes as well as patient transport and medical courier services.

In Spring 2022, Stericycle released the Safeshield antimicrobial medical waste container, which was designed for the storage and transport of regulated medical waste. The continued redesigning of products aims to condense the amount of container types provided by the company from over 150 to less than 20.[22]

In 2023, Stericycle participated in the Carbon Disclosure Project’s Climate Change program, receiving a "B" score. The company has reported to the CDP since 2021.[23]

In June 2024, Stericycle accepted an offer from WM (formerly Waste Management Inc) to acquire the business for $7.2 billion.[4] The acquisition was completed in November 2024, and the company became a wholly-owned subsidiary of WM.[24]

Services

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Stericycle offers the following types of specialized waste management:

  • Regulated medical waste management
  • Hazardous waste management
  • Sharps waste management
  • Pharmaceutical waste or environmentally persistent pharmaceutical pollutants
  • Drug disposal
  • Integrated Waste Stream services – coordinating multiple waste streams for one entity[25]

Stericycle offers secure information destruction, for both paper and hard drive, through Shred-it.

The company also offers compliance training primarily through online courses focused on applying industry regulations related to information security, human resources, medical billing, and other topics.[26] They have also developed training software related to compliance.[27]

Beginning in 2021, Stericycle has published an annual Healthcare Workplace Safety Trend Report, which analyzes issues within the medical workplace, including comparisons of day-to-day stress on a yearly basis, and the importance of medical waste management.[28]

UK

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The company has a contract for collection and disposal services to around 700 GP practices across Hampshire and Isle of Wight, Buckinghamshire, Surrey, Sussex, Oxfordshire and Berkshire and acute NHS trusts in England. In 2020 it suffered from capacity problems and failed to collect clinical waste routinely from 139 practices during September and October. 245 collections were missed. They said that the NHS was producing significantly higher volumes of clinical waste than expected because of the amount of Personal protective equipment being used.[29]

Community involvement

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Opioid crisis

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In 2018, Stericycle joined the National Safety Council as the medicine disposal partner for a nationwide campaign. Stericycle served as a leading voice on safe disposal practices giving away thousands of Seal&Send Mail Back Envelopes consumers could drop in any mailbox.[30]

The Stop Everyday Killers campaign began with the unveiling of Prescribed to Death: A Memorial to the Victims of the Opioid Crisis in Chicago. The exhibit includes a memorial wall made of pills carved with faces that represent the 22,000 people lost last year to prescription opioid overdose.[31]

In 2019, Stericycle partnered with the National Safety Council to launch the Opioids at Work Employer Toolkit.[32]

In 2020, Stericycle partnered with the Rural Community Assistance Partnership (RCAP) on a program, focusing on improving water quality through the removal of unused prescription opiates. RCAP distributed 10,000 of Stericycle’s medication mail-back envelopes to rural communities in the United States, allowing people to mail back their unused medicines for destruction and disposal through regulated means.[33]

SteriCares Hardship Fund

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Stericycle operates a fund that allows employees to support other employees in times of hardship. Stericycle employees have helped over 250 Stericycle families with over $515,000 in grants since 2016. During the fund's biggest year ever in 2017, employees raised $160,000 alone in emergency relief following Hurricane Harvey, Hurricane Irma, and Hurricane Maria. The company currently operates the fund in the US, Canada,[34][15] and Ireland.[35]

After Hurricane Harvey hit Houston in 2017, Stericycle team members amassed three truckloads of donations that were distributed to families across five Stericycle sites in Houston.[36][37] After Hurricane Maria, Stericycle facilities in Puerto Rico became gathering zones for hot meals, water, laundry service, showers, and shelter to team members who lost their homes.[38]

Global food aid

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Since 2011, Stericycle has supported Feed My Starving Children, an organization benefiting malnourished children around the world.[39]

American Diabetes Association partnership

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Stericycle partnered with the American Diabetes Association (ADA) in 2019. Stericycle's partnership with the ADA includes providing consumer-based education, raising awareness and sponsoring key events, such as the Tour de Cure.[40]

Controversy

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Pollution violation settlement

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In 2011, the Texas Commission on Environmental Quality alleged Stericycle "failed to dispose of pathological waste according to approved methods of treatment and disposition" in violation of 30 Tex. Admin. Code § 330.1219(b)(3). Stericycle denied the charges but agreed to a settlement that included a fine of $34,000. [41]

Environmental concerns

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Stericycle's medical waste incinerator located in North Salt Lake, Utah has been a topic of hot debate in the community. In September 2013, Erin Brockovich joined in with Utah residents in their call for Stericycle to discontinue their business in the area.[42][43] Brockovich's visit was spurred by a violation notice from the Utah Division of Air Quality to Stericycle for excessive emissions above legal limits, and manipulating their reporting to show lower amounts of Mercury, Dioxins, and other potentially harmful chemicals emitted through burning medical waste.[44][45]

The violations in 2013 were followed by criminal investigations at the order of Utah Governor Gary Herbert.[7][8] Investigations by California's Soil Water Air Protection Enterprise, or SWAPE, in connection with Ms. Brockovich, discovered dioxins in homes near the incinerator at levels 16 times higher than what is considered safe.[46][47]

As of December 1, 2014, Stericycle and the Utah Division of Air Quality reached an agreement acknowledging no wrongdoing, though the settlement does require Stericycle to relocate approximately 40 miles to the west of the incinerator's current location in North Salt Lake. The settlement also calls for Stericycle to pay a $2.3 million fine, half of which is forgivable if the move happens within 3 years.[48][49] In 2022, the North Salt Lake incinerator was shut down.[50]

As of October 2017, a $295 million settlement was reached on behalf of a nationwide class of Stericycle customers, following a class-action lawsuit accusing the company of engaging in a price-increasing scheme that automatically inflated customers' bills up to 18 percent biannually, according to a news release from Hagens Berman, the Chicago-based law firm that represented the class.[51]

References

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  1. ^ a b c d "Stericycle 10-K 2023".
  2. ^ "Stericycle". Fortune. Retrieved 2019-02-08.
  3. ^ "Stericycle company people". The Wall Street Journal. October 2019. Retrieved 2019-10-12.
  4. ^ a b Conlon, Sean (June 3, 2024). "Waste Management to acquire Stericycle in $7.2 billion deal". CNBC.
  5. ^ "Archived copy" (PDF). Archived from the original (PDF) on 2014-12-17. Retrieved 2014-12-17.{{cite web}}: CS1 maint: archived copy as title (link)
  6. ^ "Whistleblower claims radioactive material incinerated at Stericycle". Ksl.com. Retrieved 5 August 2018.
  7. ^ a b "Story Details - Governor Gary Herbert". Utah.gov. Retrieved 5 August 2018.
  8. ^ a b Smardon, Andrea. "Governor Orders Criminal Probe Into Alleged Misconduct at Stericycle Incinerator". Kuer.org. Retrieved 5 August 2018.
  9. ^ "Governor, protesters put pressure on Stericycle". Archived from the original on 2014-12-17. Retrieved 2014-12-17.
  10. ^ "Medical Waste Tracking Act of 1988". U.S. Environment Protection Agency. 2016-03-30. Retrieved 2019-10-02.
  11. ^ Collas, Mike (February 13, 2010). "Mark Miller cleans up at Stericycle" (PDF). Crain's Chicago Business. Retrieved 2019-10-02.
  12. ^ "Company News: Stericycle in $440 million deal with Allied". The New York Times. Dow Jones. April 16, 1999. Retrieved 2019-10-02.
  13. ^ "SRCL unveils sharps waste technology". Let's Recycle. 5 August 2013. Retrieved 2019-10-02.
  14. ^ Baron, Michael (Oct 21, 2002). "Stericycle to buy Scherer Healthcare". Market Watch. Retrieved 2019-10-02.
  15. ^ a b "Stericycle: Protecting What Matters". Waste Advantage Magazine. October 1, 2018. Retrieved 2019-10-02.
  16. ^ "Stericycle acquires PSC Environmental". Daily Herald News Services. 2014-04-23. Retrieved 2019-10-02.
  17. ^ Services, Daily Herald News (23 April 2014). "Stericycle acquires PSC Environmental". Dailyherald.com. Retrieved 5 August 2018.
  18. ^ "Stericycle Inc to buy Shred-it International Inc for US$2.3 billion". Financial Post. Retrieved 2019-10-02.
  19. ^ "Stericycle to Buy Shred-It International for $2.3 Billion". Bloomberg.com. Retrieved 5 August 2018.
  20. ^ "Stericycle sought to 'hurt NHS England'". Materials Recycling World. 31 July 2018. Retrieved 13 November 2018.
  21. ^ "NHSE agrees confidential settlement in overcharging allegations row". Health Service Journal. August 26, 2019.
  22. ^ Kazdin, Tess (August 2, 2023). "Stericycle launches reengineered sharps waste and controlled substance wastage containers". Waste Today.
  23. ^ "Stericycle Receives a B Rating on Third CDP Climate Change Sur" (Press release). April 1, 2024.
  24. ^ "WM Completes Acquisition of Stericycle". WM. Retrieved 2024-11-19.
  25. ^ "What is Integrated Waste Management?". Zendesk. Retrieved 2019-10-12.
  26. ^ "Steri-Safe Readies Customers for December 1 Globally Harmonized System Deadline". Business Wire. September 5, 2013. Retrieved 2019-10-12.
  27. ^ "Stericycle launches central customer portal for automated compliance management and client services". Dentistry IQ. November 11, 2014. Retrieved 2019-10-02.
  28. ^ "Stericycle's Third Annual Healthcare Workplace Safety Trend Report Reveals Significant Challenges for Healthcare Professionals and Consumers". Waste 360. December 7, 2023.
  29. ^ "'Significant risk' to GP practices over clinical waste firm's capacity problems". Health Service Journal. 9 November 2020. Retrieved 11 November 2020.
  30. ^ Bolden-Barrett, Valerie (April 30, 2018). "A major barrier to solving the opioid crisis: No one knows how to dispose of them". HR Dive. Retrieved 2019-10-02.
  31. ^ "Facing an Everyday Killer: NSC Brings Opioid Memorial to Nassau County, N.Y., Sept. 23-28". National Safety Council. September 2019. Retrieved 2019-10-02.
  32. ^ "'Turn the tide': NSC unveils employer toolkit for tackling opioid crisis". Safety and Health Magazine. September 19, 2019. Retrieved 2019-10-02.
  33. ^ Redling, Adam (January 16, 2020). "Stericycle partners with RCAP for prescription drug mail-back program targeting rural communities". Waste Today.
  34. ^ "SteriCares Hardship Fund". Emergency Assistance Foundation. Retrieved 2019-10-02.
  35. ^ Hubert, Thomas (November 11, 2022). "More medical waste, more profits, more dividends: How Stericycle thrived through the pandemic".
  36. ^ Szczepanski, Mallory (2018-09-27). "One Year Later: Puerto Rico's Hurricane Recovery Efforts Continue". Waste 360. Retrieved 2019-10-02.
  37. ^ Nastu, Jennifer (September 5, 2017). "Water, Waste Challenges Persist in Harvey-Hit Texas". Retrieved 2019-10-02.
  38. ^ Nastu, Jennifer (September 5, 2017). "Water, Waste Challenges Persist in Harvey-Hit Texas". Environment and Energy Leader. Retrieved 2019-10-02.
  39. ^ Zawislak, Mick (June 12, 2019). "Record-setting effort to feed the needy". Daily Herald.
  40. ^ "2019 Tour de Cure: Los Angeles". American Diabetes Association. October 2019. Retrieved 2019-10-02.
  41. ^ "Enforcement Action Concerning Stericycle, Inc. RN102942885" (PDF). Texas Commission on Environmental Quality. Archived from the original (PDF) on 2019-05-08.
  42. ^ "Erin Brockovich fires up Utah medical-waste incinerator foes". Sltrib.com. Retrieved 5 August 2018.
  43. ^ "Erin Brockovich joins environmental activists in fight against Utah incinerator - KSL.com". Ksl.com. Retrieved 5 August 2018.
  44. ^ "Stericycle Utah - Erin Brockovich". Archived from the original on 2014-12-16. Retrieved 2014-12-16.
  45. ^ "A Toxic Technology? From Biological Hazards To Chemical Dangers". Huffington Post. September 12, 2013.
  46. ^ "Dangerous levels of dioxin found in Stericycle neighborhood homes". Archived from the original on 2014-12-16. Retrieved 2014-12-16.
  47. ^ "The New Downwinders - Christopher M. Gauthiér". Christophergauthier.com. 23 April 2014. Retrieved 5 August 2018.
  48. ^ "Stericycle reaches settlement with state; clean air advocates object". Fox13now.com. 2 December 2014. Retrieved 5 August 2018.
  49. ^ O'Donoghue, Amy Joi (1 December 2014). "Proposed Stericycle settlement calls for $2.3 million fine, move to Tooele County". Deseretnews.com. Archived from the original on December 20, 2014. Retrieved 5 August 2018.
  50. ^ Maffly, Brian (July 5, 2022). "Stericycle shutters its North Salt Lake plant after 33 years of incinerating medical waste". The Salt Lake Tribune. Retrieved 27 May 2025.
  51. ^ "Stericycle $295M Class-Action Settlement". Hagens Berman.
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