Healthcare has turned out to be one of the biggest business segments – with regards to both income and business. Medicinal services involve doctor’s facilities, restorative gadgets, clinical trials, outsourcing, telemedicine, therapeutic tourism, health care coverage, and medicinal gear.
The insurance area is developing at an active pace because of its added choice, benefits, and growing consumption that are open to the private players.
Healthcare can be majorly categorized into two noteworthy parts – open and private. The Government, i.e. open human services framework includes constrained optional and tertiary care foundations in key urban communities and spotlights on giving required social insurance in rustic/rural zones.
Whereas, the private sector consists of health services provided by private organizations. This is mostly in the urban area.
Every individual has required different care depending upon their health problem like some require normal care and some require extra special care. So, based on patient condition healthcare divides into various types. Following types of healthcare are explained below:
Primary healthcare signifies the top level of contact that comes between individuals and families with the health system. Primary Health care must serve the community. It includes the care and treatment for mother and child that comes in many ways like family planning, prevention of locally endemic diseases, immunization, common diseases or injuries treatment, providing essential facilities like health education, food and nutrition, and enough supply of safe drinking water.
Primary care services are rapidly increasing in both the developed and developing countries depending upon the increasing number of adults at greater risk of chronic non-communicable disease like diabetes, asthma, back pain, hypertension, anxiety, depression, etc.
Secondary Healthcare refers to the second tier of a health system, in which patients from primary health care are sent to experts in higher hospitals for treatment. This healthcare is handled by the medical experts and other health providers who do not have a direct exchange with a patient like urologists, dermatologists, cardiologists, etc.
The SWOT analysis of Healthcare differentiates all the main strengths, weaknesses, opportunities, and threats that gives guidance to a healthcare organization to scale up more.
The SWOT analysis of Healthcare indicates the strengths of the healthcare organization in which it is good and what differentiates it from its competitors, its weakness that halts the healthcare organization to perform well and should focus on improving. It lists the opportunities that it can use to increase its market share and brand value. It also throws light on the threat that has the potential to harm the organization.
To make sure that Healthcare meets the long-term competitive advantage it must address the various concerns highlighted in the SWOT analysis of Healthcare.
Let us discuss the four steps in the SWOT analysis of Healthcare
1. Put together all the main data
To be a good and good performing hospital, you should have the necessary data to drive. The first step to conduct a SWOT analysis in healthcare is to gather and analyze the relevant data. This data is huge and ranges from patient health records, disease registers, claim status, funding sources, staff details, etc.
You need not use all the data available with you, just focus on the main metrics that are related to your strategy. Once the information is gathered, check properly that it is correct and then start to recognize your healthcare’s abilities.
At this point, your data would be more helpful. For example, does your healthcare organization have a slow emergency room, and what are the other things in your healthcare organization?
2. Conduct your SWOT analysis
Once the data is in place with you, the next step is you need to organize it into four main categories – Strength, Weakness, Opportunities, and Threats. The strengths and weaknesses of your healthcare organization would be an internal factor while the opportunities and threats are the external factors that cannot be controlled.
SWOT analysis cannot be fully data-driven but the data that you have collected would help you to think about where your healthcare organization is good and the area where it needs to improve.
3. Create SWOT Metrics
As a next step, create a four-box SWOT matrix for the business unit. This is to tailor SWOTs to specific teams or domains so that you can get an exact picture of your organization’s ability.
4. Perform Analysis and Conclude
At this stage, you need to collect what you have created at the previous three steps and analyze it. The understandings that you get from the data category into the SWOT category would give you an idea for strategic planning and would impact the decisions that you take.
Let us see the five rules to consider while you perform a SWOT analysis of Healthcare.
1. Be Specific
The SWOT of your healthcare would drive all the strategic decisions, so you need to ensure that you do not include unclear statements. For example, if you say that the main strength of your hospital is fundraising, this statement is vague.
For this, you should say that your hospital’s main strength is fundraising annually about $10 million through various methods. This is a clear statement.
2. Be Objective
Get responses from various stakeholders and subject matter experts on this. It could include outside consultants, internal research teams, or cross-functional support staff. The inputs you get from them would help to provide objectivity and accuracy.
3. Be Realistic
While you assess your internal strengths and weaknesses, you need to be realistic and keep aside any biases with regards to your knowledge or experience. The output that you derive from SWO analysis would help you to drive your organization in the right way.
So, ensure that you do not include that information that would not be useful or that is outside your scope of abilities.
4. Apply Context
Distinguish on where your healthcare organization stands current and where it is likely to be in the future. Emphasis on your strengths and weaknesses as to where you are now and the opportunities and threats as to where you can be.
5. Maintain it Simple
Sidestep over-analysis that would make it difficult for information analysis. Develop a simple and straight forward SWOT analysis that would help you to fit into your matrix.
Strengths in the SWOT Analysis of Healthcare
The strengths section of the SWOT analysis of healthcare includes the factors that have stimulated excellent organizational performance. These should be highlighted in your strength section. Few examples for the strengths would be the following:
- If your healthcare organization makes use of hi-tech medical equipment that is a rare one, it can be highlighted in your strengths.
- Your healthcare organization focusing on various techniques to improve healthcare and invest in healthcare informatics could be a strength.
- Strengths could highlight having highly trained medical staff and the various exclusive media services provided by the healthcare organization.
- Providing a focus on quality improvement could also be mentioned in the strengths.
- You can also mention the amount spend on research and development along with analytics, while you have a dedicated internal team for the same. This could be a big strength that you could indicate.
- The availability of doctors and other support staff all through the day could also be a strength.
Weaknesses in the SWOT Analysis of Healthcare
The weaknesses section of the SWOT analysis of healthcare includes the factors that affect healthcare quality or hike in healthcare costs. These could be indicated in the weakness section of the SWOT analysis. Few examples for the weakness would be the following:
- In case your healthcare has out-of-date and the treatments are being managed with it, this should be indicated as a weakness.
- While your healthcare organization has a variation in the treatment continuity because of poor communication, inadequate management training, and reduced usage of healthcare informatics all these can be included in the weakness of the healthcare organization.
- When the healthcare organization does not have enough financial resources, it should be shown in the weakness of the SWOT analysis.
- If the healthcare lacks funding and resources to take care of the programs that would impact healthcare growth.
- If your healthcare is located at a poor location that is tough to access for patients and staff, these points should be highlighted in the SWOT analysis.
Opportunities in the SWOT Analysis of Healthcare
The opportunities section of the SWOT analysis of healthcare includes the factors where healthcare would get more chance to serve and grow. Where there are new business initiatives it is considered an opportunity for the healthcare organization. If it sees an opportunity to develop new healthcare, it should be listed in this section. Few examples for opportunities would be the following:
- When the healthcare organization has increased its funds to provide better healthcare informatics, it can be highlighted in this section.
- When healthcare can create new healthcare to provide more treatment for people could be highlighted in this section.
- Healthcare can work together with many other healthcare organizations to share knowledge. This would create more opportunities for the healthcare organization to serve better.
- In case your healthcare increase funds for research and analytics for both technology and staff, it would act as an opportunity criterion for the organization.
- One more opportunity for your healthcare organization can be to develop mentor programs.
Threats in the SWOT Analysis of Healthcare
The threats section of the SWOT analysis of healthcare includes the factors that would harm healthcare organization performance. The threats are mostly external factors like similar healthcare coming up in the neighboring place, people going to other healthcare for treatment, etc. Few examples of threats would be the following:
- When there is an insecurity with regards to economic or political, this is a threat to the healthcare organization.
- When there is an increase in demand for many expensive medical types of equipment, this would be a threat because it might lead to the unavailability of equipment.
- When there is a demand to reduce healthcare costs, it would impact the entire operations of the healthcare organization. This would be a threat and should be highlighted in this section.
- When there are frequent policy and legislation updates it would impact the budget that is indeed a threat. As and when the policy changes, it would impact the overall cost of healthcare.
- Increased competition from other healthcare organizations in the nearby location.
Once you are done with the SWOT analysis of healthcare, you will be aware of where you are at the top and where you need some improvement. Your next step would be to get this to your strategy and start to work towards it. When you follow these steps, you will be able to conduct the SWOT analysis of a healthcare organization.