News Summary
Stericycle has reached a $2 million settlement following an audit by New York City’s Business Integrity Commission, revealing overbilling and compliance violations affecting multiple customers. The audit uncovered significant issues with the company’s adherence to city regulations, leading to corrective actions and hiring of consultants for future compliance. This settlement reflects Stericycle’s commitment to improving practices and demonstrating accountability in its operations as part of Waste Management.
New York City – Stericycle has agreed to a $2 million settlement after an audit by New York City’s Business Integrity Commission (BIC) uncovered overbilling and compliance violations affecting multiple customers. The BIC announced the settlement on August 20, highlighting that the audit revealed significant issues with Stericycle’s adherence to city regulations governing its contracts.
The investigation showed that Stericycle, which serves over 14,000 customers in New York City, including hospitals and medical offices, had overcharged several clients. Although specific details about the number of affected customers remain unclear, the BIC confirmed that all customers impacted by the overbilling have already received reimbursements for the excess charges.
As part of the settlement, Stericycle has initiated corrective actions, including hiring a consultant to ensure that all contracts align with BIC standards moving forward. The company acknowledged that the violations were tied to “legacy matters” concerning a limited number of customer contracts that unintentionally conflicted with BIC regulations.
Background of the Violations
The non-compliance issues scrutinized by the BIC occurred prior to Stericycle’s sale to Waste Management (WM) in November. The specific segment of Stericycle’s business dealing with these violations has since been rebranded as WM Healthcare Solutions. This audit and subsequent settlement reflect ongoing changes and efforts within the company to address past oversights and improve compliance moving forward.
Wider Implications for Stericycle and WM
WM is also tackling onboarding and billing challenges arising from the integration of its systems with Stericycle’s operations. As a part of their overarching strategy, WM anticipates that this integration will yield targeted synergies generating between $80 million to $100 million by 2025, which indicates a strong push towards operational efficiency and better service delivery in the healthcare waste management sector.
Previous Legal Matters
This settlement is not the first time Stericycle has faced legal and compliance challenges. In early 2023, the company concluded another matter by agreeing to pay a $9.5 million civil penalty for violations related to the Resource Conservation and Recovery Act (RCRA). The RCRA violations involved systemic failures in hazardous waste management between 2014 and 2020, including improper tracking and failure to manage manifest records effectively, resulting in potential risks to human health and the environment.
As corrective measures are underway from both Stericycle and WM, the companies have emphasized their commitment to nurturing customer relationships while safeguarding public health and the environment. This focus on compliance and accountability is expected to strengthen their operations and restore trust among their extensive customer base.
Conclusion
The $2 million settlement reflects an important step for Stericycle as it seeks to rectify past compliance failures and align its practices with BIC requirements. This move should not only assist in regaining customer trust but also position the company more favorably as it integrates into Waste Management’s broader operational framework.
Deeper Dive: News & Info About This Topic
HERE Resources
Additional Resources
- Waste Dive: Stericycle Settlement in New York
- Waste Today: DOJ and EPA Announce $9M Settlement with Stericycle
- Hoodline: Stericycle Agrees to $9.5 Million Settlement
- JD Supra: Stericycle Agrees to Pay $9.5 Million
- Epstein Becker Green: NLRB Issues Stericycle Decision
- Wikipedia: Stericycle
- Google Search: Stericycle compliance issues
- Google Scholar: Stericycle settlement
- Encyclopedia Britannica: Stericycle
- Google News: Stericycle
Author: STAFF HERE NEW YORK WRITER
NEW YORK STAFF WRITER The NEW YORK STAFF WRITER represents the experienced team at HERENewYork.com, your go-to source for actionable local news and information in New York, the five boroughs, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as New York Fashion Week, Macy's Thanksgiving Day Parade, and Tribeca Film Festival. Our coverage extends to key organizations like the Greater New York Chamber of Commerce and United Way of New York, plus leading businesses in finance and media that power the local economy such as JPMorgan Chase, Goldman Sachs, and Bloomberg. As part of the broader HERE network, including HEREBuffalo.com, we provide comprehensive, credible insights into New York's dynamic landscape.
