Planning & Managing Resources: ICU Expansion at North Middlesex

This report discusses resource planning and management for the expansion of an Intensive Care Unit (ICU), focusing on the North Middlesex Hospital NHS Trust. It covers the concept of resource planning, the healthcare environment in the UK, and the importance of effective planning and communication for the project. The report outlines a systematic process of business planning and emphasizes the need for third-sector involvement, resource management, and budgeting skills. It explores different funding sources, including venture capital, bank loans, and government grants, evaluating their advantages and disadvantages. Furthermore, the report examines the role of project management in effective resource management across short, medium, and long-term perspectives, highlighting the relationship between resource planning and individual, team, and organizational performance. It also addresses accountability, responsibility, budgetary restrictions, financial risks, and factors influencing decision-making in healthcare funding. Desklib provides access to this and other solved assignments for students.

Planning and managing resources

CONTENTS
QUESTION – 1........................................................................................................................................1
a. Utilizing the concept of resource planning for the expansion of ICU.........................................1
b. Sources of funding for effectively making resources available..................................................3
QUESTION – 2........................................................................................................................................5
Role of project management in effective resource management in short, medium and long term..5
Relationship amid planning and management of resources and the performance of the individual,
the team and the organisation..........................................................................................................5
Accountability and responsibility is relation with suitable use of resources.....................................6
Budgetary restrictions in the present fiscal climate..........................................................................7
Explanation of financial risk...............................................................................................................7
Factors influencing the decision-making process when managing healthcare funding.....................8
REFERENCES..........................................................................................................................................9

QUESTION – 1
a. Utilizing the concept of resource planning for the expansion of ICU
Understanding resource planning
Talking in relation with resource planning, it is being defined as the process of
management of resources on the basis of determining of requirements, obtainability,
following its application and calculating efficiency throughout the departments, projects as
well as roles. According to Matthias and Brown (2016), resource planning is simply referred
as evaluation of real inputs being required for the purpose of the project. The identification of
the requirements involves determining the essential activities for making sure equilibrium
amid the needs and obtainability. On contrary to this, as per Vincent, Burnett and Carthey
(2015), the notion in relation with resource planning is concerned with development of plans
for augmenting the productivity of the difficult functions of project by application of
characteristics encompassing simulation tools, impact evaluation and synchronization of
information.
Environment in which health and social care operates
In order to successfully operate and effective functioning of North Middlesex
Hospital NHS Trust, the government of United Kingdom has developed policy framework for
research on health and social care. This framework comprise legal needs for protecting the
interest of patients along with ethical behaviour on the basis of management of health and
social care. Numerous studies have suggested that safety as well as good care is being
regarded as one of the most vital requirement of adults and patient in UK. In addition to this,
problems pertaining to topographical differences also exists in the country. Speaking in
relation with fiscal climate related to health and social care, it is also not good because of the
absence of suitable funding from the government’s end (Betcherman, 2015). This issue is
very steady, however government has made an announcement of supplementary funds of
£20.5 billion in 2019 for NHS by 2021-2022. Other than this, because of Brexit problems
related to staffing of nurses and import of essential medicine, infrastructure and machineries
from the European Union nations is consistent. Therefore, for expansion of the ICU, the
North Middlesex Hospital NHS Trust might come across with severe predicaments owing to
this environment of United Kingdom.
Effective planning
In order to carry out the project of North Middlesex Hospital NHS Trust of expanding
ICU due to the high amount of Covid19 patients in need of intensive care, there is a
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requirement of effective planning. This will help in making sure adequate allocation of
resources and implementation of different kinds of resources being required. Further, it is
very crucial to have effective communication in regards with the objective of the project to
the people of the societies of UK along with development of efficient human resource
strategies for hiring new competent and skilful employees as well as experts because if ICU
will expand, there will be need of more personnel and experts (Kerzner, 2017). In this
regards, it is important to communicate the aim and objective of the project to the healthcare
experts, technologists, society and other HR personnel of North Middlesex Hospital NHS
Trust. Furthermore, this will also require financial investment and operational
communication.
Systematic process of business planning
The resource planning will going to use different steps and these are being elaborated
in the subsequent steps:
 Determining the goals of the business
 Determining resources that will be required
 Evaluating the nature of the resources
 Devising strategic and business plans
 Financial investment and funding
 Development of action plan
The requirement of third sector
In order to deliver best and effective services to the covid19 patient and elders of UK,
the core service user outcome need for the expansion of ICU of North Middlesex Hospital
NHS Trust will encompass help and support the priorities of the patients, their behaviour
along with the values of the staff member, their skills, abilities along with knowledge in
regards with health care (Li, Xie and Goh, 2019). There will be need of suppliers who will
supply different equipments being required in ICU wards such as ventilators, ICU beds, BP
machines, communication equipments, containers, poles, pumps and so forth. In addition to
this, there will be requirement of research and development capability, flexible workforce,
teamwork and multi-disciplinary strategy for caregiving.
Resource management and good budgeting skills
In order to make sure that all the resources are made available effectively for the
expansion of ICU of North Middlesex Hospital NHS Trust, adequate management of
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resources is very crucial in order to avoid unexpected risks of excess or lower distribution of
resources such as human resource, finance, infrastructure etc. Consequently, for the purpose
of instituting clearness along with competence in the overall project of expansion, there will
be need of well-planned resource management. Procedures in relation with levelling,
distribution of resources and forecasting needs to be preserved or upheld (Neun, 2015). Other
than this, there will be requirement of effective budgeting skills in order to prevent
unnecessary cost and apportioning of appropriate budget.
b. Sources of funding for effectively making resources available
For the project of North Middlesex Hospital NHS Trust of expanding ICU due to the
high amount of Covid19 patients in need of intensive care, there is a requirement of selecting
the most suitable types of sources of funding. Thus, for making the resources available for
this expansion, three different types of sources of funding are being explored underneath:
Venture Capital
Venture capital is being referred as the source of financing in which a capital is being
invested into the company in exchange of equity in the company. In altercation of ownership
share in the business, the venture capitalists provides funding to the new business or any
start-up business. Since, in the current case, the hospital is in great need to expand their
Intensive care unit as there has been surge in the covid19 cases, so these venture capitalists
will invest funds into this new expansion of hospital. This source of funding will offer many
advantages to North Middlesex Hospital (Bhattacharya and Londhe, 2018). Firstly, apart
from giving financial backing, the venture capitalists can also offer a valuable source of
consultation and guidance in expanding the ICU of the hospital. Seeking help from this
guidance, the management of the hospital can make different decisions comprising financial
management and human resource management. If effective decisions are being taken then it
will definitely going to help the business to grow. Nevertheless, in the current case for the
purpose of gaining funds from venture capital, track record of management of originating the
expansion of unit is quite significant. It will work only in cases where the company asking for
fund possess strong brand image and competitive edge in the market. Besides, if this option is
being selected by the company then there are chances that the hospital will lose some control
over the direction of the hospital depending upon the size of venture capital (Zahra and
George, 2019).
Bank loan
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These are being referred as the source of funding which is very famous and
commonly utilized by many businesses and organizations. In this loan or amount of money is
being borrowed from any financial institution or bank for a particular time period within the
decided calendar for reimbursement or payment. Further, the North Middlesex Hospital NHS
Trust can take varied kinds of loans from the bank for the expansion of ICU such as working
capital, overdraft, fixed asset loan, factoring loan and finally, hire purchase loan.
Nevertheless, for obtaining loan from the banks there is a need of strong plan of the business,
adequate collateral along with optimistic record of the management. There are many benefits
that the hospital will gain if they take loan from banks (Bird, 2019). The very first is keeping
the control of the hospital. A bank gives loan or money to the business on the basis of
business value and its professed capabilities to service the loan through doing payments in
full on timely basis. In this, banks does not take any kind of equity or ownership in the
business which signifies that they does not have any sort of control over the activities of the
new business. Nevertheless, the interest rates are very high and this might not sufficient for
the hospital to completely meet its requirements.
Government grants
Speaking in relation with government grants, it is being referred as the award of
financial assistance in the form of money given by the federal government for qualified
grantee with no anticipation of getting the funds back within time. In other words,
government offers grants in the form of money or tax credit for starting new business or any
form of expansion in the existing business. If the government finds that the project will going
to support public and will stimulate the economy of the region or nation then they allot grants
to those projects. One of the biggest advantage of getting funds from this source is that it does
not need to be repaid and it is just like a donation from the government. Addition, these
grants also available widely from healthcare, education and many other commercial
activities. However, there is one disadvantage of this source of fund that applying for the
grants is not an easy task rather it is a gruelling procedure (Castro, Guccio and Rizzo, 2017).
Further, the proposal needs to be ticked several boxes in order to be considered by the
government for grant. Hospital will be required to prove their worth for the expansion of their
ICU and must meet out strict criteria as well.
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QUESTION – 2
Role of project management in effective resource management in short, medium and long
term
Project management plays a very crucial role as it helps in management of all the
resource of the business corporation. The project manager of the project is accountable for
making sure that their company has adequate people with suitable abilities to carry out the
work being required. Further, it is crucial for the manager to effectively communicate and
establish standards and aims and must manage limited supply of resources in connection with
the dynamic demands. For managing continuously altering demand, the project manager is in
great need to devise short, medium and long term plans and they are being explained
underneath:
 Short Term Plans – In this, the manager is accountable to consider specified task in
minimum period of time (Goll and Rasheed, 2015). With short term plans in place,
manager can make adjustments for urgent priorities. This adjustment might relate with
alteration in the scope, present pool of resources and schedules.
 Medium Term Plans – These are those plans which differs from one month to another
six months and specifically encompasses obligating particular kind of resources or
human asset in the firm. These plans supports in offering more precise as well as
comprehensive strategy in regards with effective use of available resources.
Nevertheless, it is not subject to unceasing alterations.
 Long term plans – Long term plans are those plans which takes into consideration
extended view of resources being demanded. The time period of such plans is more
than five years. In these plans, the project manager is not destined to plan a separate
assignment for a specified time period rather he is obliged to look at general
assignments and resources being required in general group of demand (Shepherd and
Rudd, 2018).
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Relationship amid planning and management of resources and the performance of the
individual, the team and the organisation
Performance of individual, team and organization is affected by varied approaches of
resource management in health and social care services. In regards with North Middlesex
Hospital NHS Trust, for making improvement in all the overall performance of the company,
performance review is being utilized as a sub-section of effective resource management. For
example, hospital has utilized particular policy for augmenting the abilities and care giving
capabilities of the healthcare employees and nurses. This policy supports in effective
management of talent and human resource in the organization. Other than this, the hospital
has also implemented long term model related to workforce planning for enhancing the
operational skills of the workers, studying their reimbursement score and executing
advantageous terms for transfer of the workers. Besides, there is also a policy concerning
promotion of the staff members on the basis of team performance which shares direct
association with organized premeditated resource planning in the organization (Chanda and
Shen, 2019). Resource planning efforts being adopted by the hospital includes pre-
determined standards, objectives and goals for their employees. Seeking help through this,
the management can obtain information constructed formal feedback for their caregivers
which is considered quite operative in relation with performance management of the
company.
Accountability and responsibility is relation with suitable use of resources
Suitable utilization of the available resources and their management for the expansion
of ICU project will majorly rely on responsibility as well as accountability of the
management of North Middlesex Hospital NHS Trust. Thus, one of the key prerequisite for
effective functioning of the new expansion project is supervisory accountability. In addition
to this, the management along with the project manager have the obligation of embracing
innovative health policies on the basis of present fiscal climate and political scenario in
United Kingdom. The growth and failure of the project is majorly dependent on the
responsibility of the management in regards with organizing, synchronising and
administering human resource, laws and regulations, physical, capital and operational
resources (Whetton and Cameron, 2015). Now, talking in volume about accountability, it is
also considered as one of the most important instrument for leading the activities of
determining the resources being needed and their successful apportionment across the project.
For establishing the assets consumption agenda for the project of North Middlesex Hospital
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NHS Trust, accountability will be very crucial as it will make clarity regarding the manner of
carrying out the health systems in anticipated method. Additionally, the assets consumption
agenda will also be grounded on the factors after Brexit in policies of the government,
community and finance on investment. On contrary to this, for assimilation of delivery of
health services, operational execution of top-down policy and strategy policy outline is quite
significant for North Middlesex Hospital NHS Trust. The level of accountability of the
employees related to project along with the managers are also considered as the deciding
factors for effective delivery of health services. Consequently, for the successful operation of
the expansion project, maintenance of accountability association amid decision makers and
patient of the hospital is a key viewpoint (Armstrong and Taylor, 2017).
Budgetary restrictions in the present fiscal climate
North Middlesex Hospital NHS Trust is planning to expand their ICU due to surge in
the case of patient related to covid19 and thus, funding is the biggest challenge which will be
faced by the hospital in UK health and social care system presently. The current condition
and economic environment of UK will definitely impact the functioning of the hospital. In
UK, there are insufficient political inventiveness in regards with financing the healthcare and
because of this, the North Middlesex Hospital will more likely to have more cost related
operations. In addition to this, it has been observed that medical technology being used and
involved in ICU are very costly and due to the present fiscal climate of UK, it will costs to
the organization additional around £ 2.20 million in every two years (Carthey, Walker and
Deelchand, 2019). Consequently, it can be said that after Brexit, hospitals are explicitly
reliant on grants and help of government for its project of expanding intensive care unit and
other related planning. Since, the hospital is looking for government grants and bank loans
for funding their expansion project, budgetary restriction will surely going to impact their
expansion planning in several manners.
Explanation of financial risk
Talking in relation with the concept of financial risk in the North Middlesex Hospital
NHS Trust, it is just same like any other company. It is simply defined as the probability that
the shareholders will lose money at times when they will invest in health and social care
organization. Considering the example, if the hospital is being supported by debt as well as
credit, there might be chances that healthcare does not repay to its suppliers. In addition to
this, financial risk can also be understood as the situation where company is honouring its
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responsibilities. Different types of financial risks might takes place in the hospital and these
are as follows:
 Credit risk – It is also known as default risk and is related with the company which
gets funds from investors and because of certain reasons, they are not able to repay.
Due to this, there might be principal amount loss and reduced income for the
investors.
 Liquidity risk – This is being referred as that risk which encompasses securities as
well as assets which are not easy to sell and buy in short time period in the
unpredictable markets (Brandon, 2017).
 Asset-backed risk – Asset backed risk consist of alteration in the securities
fundamental possessions’ value. Some of the risks being personified in this type of
risk is forestalment and interest rates.
 Equity risk – Equity risks are those risks which are concerned with the unpredictable
alteration in prices of shares of stock.
Factors influencing the decision-making process when managing healthcare funding
There are different factors which might impact the decision making process at times
of management of healthcare funding and these are being elaborated in the subsequent
paragraph:
 Information – Information is being regarded as the vital element that shapes the whole
process of decision making. If adequate information in regards with varied advantages
and disadvantages of funding sources are available to the management of hospital
then fast and accurate decisions will be taken.
 Features of Decisions – The features of decision is concerned with complexity being
involved in the decision. It significantly impacts the pace of decisions that needs to be
taken. Freeing up space for the expansion of ICU and arranging finance for the same
is a complex decision and also requires devotion to coherent decision making
procedure. Further, the consequence of this decision is also huge and thus, more time
will be required in making decisions.
 External Environment – It includes political and fiscal climate in which the firm
operates. Thus, fund raising for the expansion of ICU of North Middlesex Hospital
NHS Trust is majorly relied on the political condition and its stability in UK. The
policies of the government related to trade and business after Brexit is influencing the
functioning of the hospital (Ho, 2016). And effective performance is essential for
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selecting the strategies related to raising funds. Further, the inflation rate is quite
higher in the nation and this might impact the freeing up resources and funds for the
expansion of ICU.
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REFERENCES
Books and journals
Armstrong, M. and Taylor, S., 2017. Armstrong's handbook of human resource management
practice. Kogan Page Publishers.
Betcherman, G., 2015. Labor market regulations: what do we know about their impacts in
developing countries? The World Bank Research Observer, 30(1), pp.124-153.
Bhattacharya, S. and Londhe, B.R., 2018. Micro Entrepreneurship: Sources of Finance &
Related Constraints. Procedia Economics and Finance, 11, pp.775-783.
Bird, C.L., 2019. Visualizing financial success: planning is key. International Journal of
Consumer Studies, 38(6), pp.684-691.
Brandon, D.M., 2017. Project performance measurement. The Wiley Guide to Project
Control, 9, p.75.
Carthey, J., Walker, S. and Deelchand, V., 2019. Breaking the rules: under-standing non-
compliance with policies and guidelines. BMJ.
Castro, C., Guccio, C. and Rizzo, I., 2017. The Effects of Reimbursement Mechanisms on
Medical Technology Diffusion in the Hospital Sector in the Italian NHS. Health
Policy, 115, pp.215–229.
Chanda, A. and Shen, J., 2019. HRM Strategic Integration and Organisational Performance,
Resource Books. New Delhi, India: SAGE.
Goll, I. and Rasheed, A., 2015. The Relationships between Top Management Demographic
Characteristics, Rational Decision Making, Environmental Munificence, and Firm
Performance. Organization Studies, 26(7), pp.999–1023.
Ho, J.K.K., 2016. Formulation of a systemic PEST analysis for strategic analysis. European
Academic Research, 2(5), pp.6478-6492.
Kerzner, H.R., 2017. Project management: a systems approach to planning, scheduling, and
controlling. Wiley.
Li, Y.F., Xie, M. and Goh, T.N., 2019. A study of project selection and feature weighting for
analogy based software cost estimation. Journal of Systems and Software, 82(2),
pp.241-252.
Matthias, O. and Buckle, M., 2016. Accidental lean: Performance improvement in an NHS
hospital and reflections on the role of operations strategy. Routledge Compendium of
Public Services Operations Management.
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Neun, S.P., 2015. Economics Interactions with Other Disciplines. Sources of Health Care
Funding throughout the Globe, 1, pp.5-8.
Shepherd, N. and Rudd, J.M., 2018. The Influence of Context on the Strategic Decision-
making Process: a review of the literature. International Journal of Management
Reviews, 2(3), pp.60-71.
Vincent, C., Burnett, S. and Carthey, J., 2015. Measurement and monitoring of safety.
London, UK: The Health Foundation.
Whetton, D. and Cameron, K., 2015. Developing Management Skills. Upper Saddle River,
NJ: Pearson Education.
Zahra, A. and George, G., 2019. Absorptive Capacity: a review, reconceptualization, and
extension. Academy of Management Review, 27(2), pp.185–203.
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