A system and method related to dispensing and disposing medical items is provided. The dispensing portion is generally configured to dispense medical items stored within compartments based on dispensing instructions. The disposal portion is generally configured to sort waste items into a plurality of containers according to applicable rules and regulations governing the handling and/or disposal of such items. In some embodiments, a system comprises sorting stations each of which houses a number of disposable containers. Each station can identify an item of waste, determine the most appropriate container for the item, and facilitate disposal of the item in the appropriate container.