The healthcare industry is under pressure to improve patient safety, operate more efficiently, reduce medical errors, and provide secure access to timely information while controlling costs, protecting patient privacy, and complying with legal guidelines. Analysts, practitioners, patients and others have concerns for the industry. Using the popular strategic analysis tool of strengths, weaknesses, opportunities, and threats analysis (SWOT), facing the healthcare industry and its adoption of information technologies (IT) are presented. Internal strengths supporting further industry investment in IT include improved patient safety, greater operational efficiency, and current investments in IT infrastructure. Internal weaknesses, however, include a lack of information system integration, user resistance to new technologies and processes, and slow adoption of IT. External opportunities including increased use of the Internet, a favorable national environment, and a growing call for industry standards are pressured by threats of legal compliance, loss of patient trust, and high cost of IT.