When we surveyed behavioral health leaders for our State of Behavioral Health report, regulatory change and funding changes tied to regulation took the top two spots, ahead of census pressure and staffing. The industry’s attention lives on the rulebook, and on what the rulebook does to revenue. 

The fear is rational. As Devon Wayt, Founder & CEO of Circa Behavioral Healthcare Solutions, laid out during “Regulatory Change Ahead” at Kipu’s Elevate 2026 conference, the chain is unforgiving: license, then accreditation, then the ability to bill. Livelihoods are built into every link of that chain, including yours. 

But fear has a side effect that compliance leaders know well: under pressure, people revert to the old way of doing things, which is precisely the wrong direction when the rules have changed. That tension ran through the whole session, which paired Waite with Navdeep Sagoo, director of compliance at ROWI Teen & Parent Wellness Centers. The organizations that absorb regulatory change with the least friction have stopped treating compliance as a person or a binder and started treating it as a system with a rhythm. Here are the top five insights we’ve learned: 

  1. Compliance chaos is a systems problem, not a people problem. One of the most consistent issues Devon sees inside struggling organizations is that compliance breakdowns are the result of an absence of systems, not ineffective employees. When compliance lives in one office instead of permeating clinical, hiring, medical, and operations, there’s no opportunity for staff to learn the hows and whys of setting the organization up for compliance success. Front-line staff are almost always eager to do the right thing, but they need guardrails that make the right thing the easy thing. Leaders who respond to findings by blaming people are treating a symptom, and often the wrong one. 
  1. A policy nobody hears about is a finding waiting to happen. The most common failure pattern looks like this: a regulation changes, leadership amends the policy, signs it, files it, and considers the matter closed. But when staff aren’t made aware and aren’t living the practicalities of that change day to day, you’re undermining your ability to pass an audit. Nine hundred pages in a binder protect no one. ROWI, currently opening two new locations a month, closes that gap with a loop: every update triggers a notification, and every one of roughly 200 employees logs in and acknowledges what changed. “I didn’t know” stops being possible, and surveyors can see it. 
  1. Rhythm beats scramble. Navdeep runs compliance on a cadence: site-level deadlines with enough flexibility for staff to perform, monthly reviews rolling up to quarterly, a biannual reflection, and an annual look at the bigger picture. The payoff shows up on survey day, when nobody scrambles. The same discipline applies to the intake of change itself: payer alerts, provider notices, association bulletins, and the Joint Commission and CARF updates that land every July can arrive as calendar items rather than emergencies. You cannot control when rules change, but you can control whether the change finds you organized. 
  1. Retention is a compliance metric. It may feel counterintuitive, but the best corporate compliance program is one that gives staff permission to take care of themselves, and Devon made that case directly. With turnover, you’re losing institutional knowledge and spending time reteaching inexperienced clinicians on complex cases, which can surface later as documentation gaps and findings. The same logic applies to auditing, since qualitative chart review framed as education keeps clinicians improving, while punitive review teaches them to hide. A culture of safety is more than an annual survey question; it’s the condition under which everything else on this list works. 
  1. Get ahead of AI before a memo does. States have begun writing behavioral-health-specific AI governance into law, human-in-the-loop requirements included, and payers are forming their own positions. Navdeep has already had to address clinicians using AI tools that were never approved, and her takeaway was blunt: your teams will use these tools either inside guardrails you set or inside guardrails you discover after the fact. The proactive version costs less, so define approved tools, settle the PHI question, and know what your state and your biggest payers currently say. 

Organizations that treat compliance as infrastructure collect more than clean surveys. They get calm where competitors are scrambling, retention where competitors are reteaching, and documentation that holds up when a payer puts it under pressure. Regulatory change took the top two spots on our survey because leaders know it will keep coming. The organizations that thrive won’t be the ones that predicted every change; they’ll be the ones whose systems made change routine. 

These five insights come from a longer and franker conversation than a blog can hold. Watch the full “Regulatory Change Ahead” session on demand for the panel’s take on corrective action plans, audit readiness, qualitative chart review, and what a compliance rhythm looks like inside a real facility.

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About the Authors

Travis Moon
Travis Moon Travis Moon, Kipu's Content Marketing Strategist, is a seasoned leader in healthcare IT and content marketing, specializing in the behavioral healthcare sector. He develops impactful, data-driven campaigns that support healthcare professionals and enhance patient outcomes. With over a decade of experience, Travis has led strategic content initiatives for major healthcare organizations, including the launch of data visualization tools and thought leadership campaigns.

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