A SWOT analysis is commonly used in companies to analyze internal and external positives and negatives (internally you have strengths and weaknesses in an organization, and externally you have opportunities and threats). This allows you to categorize what your internal group or organization can accomplish, as well as observe what the factors are outside the organization and how they will affect it.
For a healthcare organization, it is useful to define these different criteria because they will help you streamline your processes and care and identify areas of improvement.
For example, a certain healthcare organization may be extremely talented at preventative care and routine maintenance but not well equipped for emergencies. The SWOT analysis will address this and help the organization hire accordingly or reconfigure their services to better handle those situations. External factors will also be included, because there is a much greater opportunity for pediatric care if the practice is located in a suburban area, but you can address potential threats as well, such as developing large organizations, urbanization of the area, or an aging populace that has a different subset of medical needs.
The SWOT analysis is just a tool that is used to address potential positives and negatives internally and externally and appropriately plan your business needs.