In 2025, regulatory compliance is the top priority for home- and community-based service (HCBS) providers.

Compliance surpassed cost reduction and operational efficiency as the top business priority for HCBS providers in 2025, according to a new survey from home care software provider HHAeXchange. Over 70% of surveyed HCBS owners and operators ranked compliance as either the first or second priority for the rest of the year. 

This shift reflects growing concern about increased regulatory complexity and more frequent audits, according to the survey. Among agencies using reporting tools to guide decisions, 52% cited ensuring compliance as the most important reason.

“Electronic visit verification and general compliance tools are the technology solutions [providers] are most likely to invest in to drive growth and business goals, with 37.6% ranking it as their top choice,” Stephen Vaccaro, HHAeXchange’s president, told Home Health Care News. “Beyond that, there are some core operational areas that are intrinsically linked to compliance.”

Founded in 2008, New York-based HHAeXchange is a home care management software company focused on the Medicaid HCBS population. The organization surveyed 145 HCBS owners and operators across its customer base to determine current priorities, concerns and opportunities facing the industry.

When considering solutions for daily operations, 34.1% of providers ranked staff scheduling and communication as their top need, closely followed by billing and payment processing at nearly 32%.

“This is logical since having support in these areas can streamline provider workflows, allowing them to focus on compliance,” he said. “They’re prioritizing solutions to meet industry mandates but also leveraging technology to mitigate the complexity of staying compliant while maintaining the delivery of quality care.”

Heightened awareness around compliance likely stems from increasing regulatory complexity, according to Vaccaro. More frequent audits, coupled with the industry’s transition toward value-based care models, require providers to demonstrate measurable quality outcomes while adhering to stringent reporting standards.

“There’s also a growing awareness of how compliance tools can act as enablers, rather than just checkpoints,” Vaccaro added. “Effective compliance management systems empower providers to align staff, resources and operations to meet regulatory standards while optimizing care delivery and driving growth opportunities. It is essentially a dual-scope benefit, which explains why compliance has become a chief concern among providers this year.”

Vaccaro highlighted that, despite having reporting tools, nearly two-thirds of agencies are not fully leveraging their data to inform business decisions that support organizational growth.

“As the industry continues to move toward value-based contracting, there’s a growing opportunity to help agencies harness the full potential of reporting tools, which can make operations more efficient and improve care outcomes,” he said.

Another significant result from the survey showed an increased interest in specialized training for caregivers.

Nearly 70% of providers reported offering specialized caregiver training focused on disease-specific care, like Alzheimer’s and diabetes. This training can help agencies build trust with clients, provide more compassionate and effective support, better detect changes in condition and strengthen referral relationships with health care partners, according to the survey.

Finally, data showed providers are driven by a desire to help members receive higher-quality, compassionate care, with 61% of respondents ranking it as their top source of inspiration.