GovTech vs Healthcare SaaS Churn Rate
Side-by-side benchmark comparison, updated March 2026.
GovTech has a lower monthly churn rate (0.8%) than Healthcare SaaS (1.4%), a difference of 0.6 percentage points. GovTech median ARPU is $500 versus $320 for Healthcare SaaS.
Head-to-head benchmarks
| Metric | GovTech | Healthcare SaaS |
|---|---|---|
| Monthly churn | 0.8% | 1.4% |
| Annual churn | 9.2% | 15.9% |
| Median ARPU | $500 | $320 |
| Typical customer base | 50-500 | 100-2,000 |
Top govtech churn drivers
- Budget appropriation cycle not renewed for the software line item32%
- Procurement rules required retendering after contract term27%
- Elected official change shifted departmental priorities20%
- Product failed FedRAMP, StateRAMP, or CJIS compliance audit13%
Top healthcare saas churn drivers
- EHR or practice management system switch forced migration31%
- HIPAA compliance concerns or audit failure24%
- Budget cuts in hospital or clinic IT19%
- Product lacking clinical workflow integrations14%
Why govtech retains better than healthcare saas
The 0.6-point gap between GovTech and Healthcare SaaS reflects differences in switching cost, value density, and purchase motivation. GovTech customers face higher integration and data-migration friction, which extends tenure. Healthcare SaaS tends to have more fragmented alternatives and weaker lock-in. Details in each benchmark page above.
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