Analyzing an organization using the strengths, weaknesses, opportunities, and threats (SWOT) framework generates crucial insights for decisions on major new initiatives. For example, when considering an acquisition or launching a new product or service, a SWOT analysis can raise warnings about customer sensitivities or gaps in expertise; alternatively, it can reveal new lines of business and unmet needs that may lead to new business opportunities. A SWOT analysis also serves as a typical first step in a broader strategic planning process. This technical note focuses on the use of a SWOT analysis in the healthcare sector, including recommendations for key questions to ask when initiating a SWOT analysis and advice for arranging information in a way that supports strategic decision-making.<br><br>The SWOT approach has gained importance in the healthcare sector in recent years due to both market and policy shifts. Healthcare is a site for major reform as policy-makers seek to reduce costs and encourage innovation. Across the developed world and in many developing countries, better strategic decision-making is essential to healthcare providers and finance organizations as they care for ageing populations, seek to reduce the impacts of lifestyle-related diseases such as obesity, and work to manage expenses associated with treating chronic diseases. This technical note is ideal for use with product no. 9B16M084.
In 2015, the new chief executive officer of Wichita County Health Center (WCHC) was evaluating his organization’s strengths and weaknesses in light of a changing environment for health-care delivery in rural Kansas. WCHC faced three key issues: whether to sign a service agreement with Colorado-based Centura Health; whether to hire additional full-time nursing staff instead of paying high fees to an external staffing company; and identifying opportunities to grow its patient base. To assist with these three decisions, WCHC needed to conduct a strategic planning process using the strengths, weaknesses, opportunities, and threats (SWOT) framework. For the related technical note, please see product no. 9B16M076.
After suffering severe complications from a relatively minor surgery at a California children’s hospital in early December 2013, a young teenage girl was declared brain dead. However, to her family, the girl seemed responsive and they refused to accept the hospital’s statement that their daughter was deceased. The hospital arranged visits with social workers and other staff in an attempt to help the family understand that their daughter was dead and, after three days, informed the family of its plan to move the teen’s body to the morgue. The case quickly became a nationwide media event. The family acquired a noted lawyer to ensure the teen received the care the family thought was needed, while the hospital hired a public relations firm to become the hospital’s voice in the issue, a move that might have exacerbated the problem. With such a complex and tragic crisis that rapidly unfolded, should the hospital have a policy in the event that family members disagree with an official medical diagnosis? How could the hospital have managed the aftermath of the teen’s death and prevented a media embarrassment?