Service Fees

Stericycle appreciates the opportunity to provide its customers with essential medical waste and compliance services. As a trusted partner, Stericycle is committed to continuous improvement programs dedicated to controlling our costs to provide our customers with the high-quality service they expect. 

Here you will find more information about Stericycle’s service fees. These are driven by various internal and external factors that impact our business. 

Service Cost Recovery Fee and Surcharge

Due to the pandemic, we have experienced unforeseen, significant cost escalations across our operations. As a trusted partner, we have made every effort to manage these expenses but must now pass on some of these costs.

The cost escalations we are experiencing include labor, supply chain, transportation, and disposal. For example, the Consumer Price Index (CPI) has increased by 8.5%1 over the last twelve months. Rising compensation costs2 have been exacerbated by a transportation industry shortage of 80,000 workers3 and a 10.5% increase in long-haul trucking costs.4 These factors have been further impacted by local, state, and federal requirements, new service requests, and changes in waste patterns that have led to staffing shortages and increased costs.

Stericycle has implemented two service fees to address these costs. Your contract will determine which specific service fee (Service Cost Recovery Fee or Service Cost Recovery Surcharge) is applicable. Only one service fee would apply.

Please see below for additional detail on each of these service fees.

We strive for transparency and encourage you to reach out to our Customer Experience team or your account manager with additional questions.

Service Cost Recovery Fee

The Service Cost Recovery Fee is a flat percentage of applied to invoiced services before taxes and appears on the invoice as a separate line item. Effective October 1, 2022, the fee will be 6.8%. For information on prior rates, please click here. The fee may fluctuate based on changing economic conditions and will be reevaluated on a regular basis. The latest information will be published here.

For frequently asked questions regarding the Service Cost Recovery fee, click here.

Service Cost Recovery Surcharge

The Service Cost Recovery Surcharge is applicable to any customer not already receiving the Service Cost Recovery Fee. The surcharge is calculated at 75% of the past 12-months CPI5 reported by the Bureau of Labor Statistics, adjusted quarterly, and applied to your invoiced services before taxes. Once the 12-month CPI returns to 2%, the surcharge will be reduced to 0%. The surcharge appears on the invoice as a separate line item. 

Calculation Methodology

If the average of the past 12-month CPI last reported in the last quarter is less than 2%, Service Cost Recovery Surcharge is 0%.

If the average of the past 12-month CPI reported in the last quarter is greater than 2%, Service Cost Recovery Surcharge is equal to 75% of that average.

For frequently asked questions regarding the Service Cost Recovery Surcharge, click here.

*Note: Healthcare networks located in New York City and New Jersey received the Service Cost Recovery fee effective March 1, 2022.

[1] U.S. Bureau of Labor Statistics, Consumer Price Index report, August 10, 2022
[2] U.S. Bureau of Labor Statistics, Employment Cost Index, 12-month change as of June 2022. Total compensation for Private industry workers in All industries and occupations.
[3] American Trucking Associations, Inc., Driver Shortage update 2021, October 25, 2021.
[4] Cass Truckload Linehaul Index, Cass Information Systems, July 2022.
[5] Consumer Price Index, Bureau of Labor Statistics

Percent of Invoice Fuel Surcharge – Stericycle-Serviced Waste

Stericycle uses an index-based surcharge that is adjusted monthly. Changes to the surcharge will be effective the first business day of each month. The surcharge will be based on the National U.S. Average ‘On Highway’ Diesel Fuel Price reported by the U.S. Department of Energy for the prior month to the adjustment.

The prices on these indexes are published by the U.S. Dept. of Energy and Stericycle is not responsible for the information provided.

At Least
(price per gallon)
0
$2.76
$3.01
$3.26
$3.51
$3.76
$4.01
$4.26
$4.51
$4.76
$5.01
$5.26
$5.51
$5.76
But Less Than
(price per gallon)
$2.75
$3.00
$3.25
$3.50
$3.75
$4.00
$4.25
$4.50
$4.75
$5.00
$5.25
$5.50
$5.75
$6.00
Surcharge
(% of Invoice)
5.80%
6.30%
6.90%
7.40%
7.90%
8.50%
9.00%
9.60%
10.10%
10.70%
11.20%
11.70%
12.30%
12.80%

If the diesel rate rises above $6.00, the 12.80% surcharge will be increased 0.6% for every $0.25 increase in the diesel rate. 

Percent of Invoice Fuel Surcharge – 3rd-Party Healthcare Waste

Stericycle uses an index-based surcharge that is adjusted monthly.  Changes to the surcharge will be effective the first business day of each month. The surcharge will be based on the National U.S. Average ‘On Highway’ Diesel Fuel Price reported by the U.S. Department of Energy for the prior month to the adjustment. 

The prices on these indexes are published by the U.S. Dept. of Energy and Stericycle is not responsible for the information provided.  

At Least
(price per gallon)
$-
$3.05
$3.15
$3.25
$3.35
$3.45
$3.55
$3.65
$3.75
$3.85
$3.95
$4.05
$4.15
$4.25
$4.35
$4.45
$4.55
$4.65
$4.75
$4.85
$4.95
$5.05
$5.15
$5.25
$5.35
$5.45
$5.55
$5.65
$5.75
$5.85
$5.95
$6.05
But Less Than
(price per gallon)
$3.04
$3.14
$3.24
$3.34
$3.44
$3.54
$3.64
$3.74
$3.84
$3.94
$4.04
$4.14
$4.24
$4.34
$4.44
$4.54
$4.64
$4.74
$4.84
$4.94
$5.04
$5.14
$5.24
$5.34
$5.44
$5.54
$5.64
$5.74
$5.84
$5.94
$6.04
$6.14
Surcharge
(% of Invoice)
10.50%
11.00%
11.50%
12.00%
12.50%
13.00%
13.50%
14.00%
14.50%
15.00%
15.50%
16.00%
16.50%
17.00%
17.50%
18.00%
18.50%
19.00%
19.50%
20.00%
20.50%
21.00%
21.50%
22.00%
22.50%
23.00%
23.50%
24.00%
24.50%
25.00%
25.50%
26.00%