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Decision Management In Public SectorAssignment

Introduction - Decision Management In Public Sector

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The following report is a study of the Healthcare sector industry's decision-making management’s capability in the public sector. Decision-making policies in the health care public sector have an important impact on the lives of the general public. The paper is focused on the Healthcare sector NHS, UK’s capability in managing organization funding, and the respective limitations associated with the financing. Moreover, the report has been focused on the analytical approach to the organization's financial information. Furthermore, the analysis of the financial motioning and control prowess of the organization has been also focused on in the report. Thus, the paper has tried to provide tender documentation and the criteria for evaluating the tender system of the respective organization.

Task 1:

1.1 organizations Funding and Limitations

NHS England Funding

NHS England is a large organization that is established to help people in emergency situations. It is a public hospital that is generally funded by the national sector. The NHS majorly provides healthcare, including primary care along with the long-term healthcare sectors. NHS is a healthcare sector that is mainly funded by “general taxation” along with a little amount that is being contributed by “National Insurance payments”. As per the view of Baggus et al. (2021), fees are generally levied assertively with the recent changes in the “immigration Act 2014”. The department of the UK government is responsible for the sector of NHS healthcare is “The Department of Health and Social Care” which is headed by the “Secretary of State for Health and Social Care”. The main department of “social and health” care had a budget of 110 billion Euros in the year 2013 to 2014 (Trotman, et al. 2020). Most of that money is spent on the NHS.

Figure 1: NHS yearly Funding

(Source: Williams et al. 2020)

Funding for the health care sector in England is mainly comes to from the budget of “The Department of Health and Social Care”. The general planning for spending in the healthcare sector is the amount of 190.3 billion Euros in the year 2021-22. As per the opinion of Hinsliff-Smith et al. (2020), the majority of spending of the department which is 136.1 billion Euros in 2021-22 is passed to the NHS England and also for the improvement of the NHS for spending on the services of health. The remaining money is allocated for spending to the other different national bodies. It can be the public health which includes the grants for local authorities, developments and training for the staff of the NHS, and controlling the care quality of the hospital. According to Nhs.uk, (2022), the spending of the department in the year was 2021-22 which includes 33.8 billion Euros for responding to the Covid-129 pandemic. This includes the personal protective staff equipment, the tests and vaccine, Trace programming, and developing a better functional discharge process for the patients of the hospital.

NHS England Limitation

The limitation of NHS healthcare findings is an amount that controls the care that is delivered to the patient and the ways for getting the services as Social services are: Direct services and Direct Individual or payment budget. As per the view of Baggus et al. (2021), NHS has a direct individual or payment Budget called the “Personal Health Budget” or PHB. This PHB is the currently only system available in a limiting number of the “Clinical Commission Groups” which are involved in the pilot scheme to evaluate the effectiveness of the PHB. There is a possibility that the person has to control the care with the help of an agency if the person is not under the CCG.

1.2 Information related to reporting

Accommodated with Section 13A of the NHS Act of 2006, the capital resources and revenue limits of the NHS England for the year 2021-22 are included in this section which is with the limitation for the past and future years that are covered by the Funding Settlement of NHS. According to Nagington, (2020), the revenue and capital resources limit mainly reflect the “NHS Funding Settlement '' which includes 105 billion Euros with the additional 3 billion Euros for supporting the NHS recovery from the pandemic of Covid-19 included in the Spending Review of 2020. There are other plans for deploying the remainder of 3 billion Euros which is included the 1billion Euros for the elective recovery. Whereas the mandate that includes the amount of 6.6billion Euros announced for supporting the NHS England and the improvement of NHS from the pandemic is maintained in the first six months of that financial year. It is expected that NHS England and the improvement of NHS share the data and provide the updates timely on both revenue and capital spending plans that include the data on capital outcomes and deployment which are delivered (Iacobucci, 2021). Even in the current exceptional situation, it became essential that the money of the public need to spend on care continually which will ensure the financial risks to the care and health systems a total hearty managed and the financial interference the Covid-19 are mainly targeted and also time-limited.

Revenue Budget (in cash term, £m)

2019 to 20

2020 to 21

2021 to 22

2022 to 23

2023 to 24

Long-Term Plan of NHS Settlement






Total budget(including the net transfer of post-settlement )






Table 1: Revenue budget and NHS long term Plan

(Source: Williams et al. 2020)

Above table is showing the details of revenue budget of different years that are showing till 2023 to 24. The long-term plan of NHS settlement is showing the different values that are supported in different years. Those are targeted for maintaining the financial condition of the NHS (Trotman, et al. 2020). The total budget is also shown in the table that is delivering the details including the net transfer values for post-settlement. The government has basically set nearly five financial tests that support the implementation assessed with the NHS long-term plan.

1.3 Analysis of the organization

The long-term plan of NHS that has been implemented for the future settlement of the hospital has some basic improvements. Although the pandemic has made many disruptions the goals and objectives of the plan are associated with taking form in the year 2021-22 by July 2021. According to Nhs.uk, (2022), there will be included more nurses as many as 50,000 in the NHS along with an increase of 50 million more appointments in the department of general practice per year. The hospital is about to build 40 new building of the hospital and the performance of the hospital are on way to improvement which is included the A&E performance, performance referral to “the treatment waiting time standard”, and a reduction in the number of the patient by improving the treatment pathway. It is noteworthy to keep in mind that the organization generally depends on the economical performance of the UK. The key factors that helped the organization to perform according to the needs and expectations of the consumers are:

Flexible sustainability-

The organization NHS provides low cost-effective healthcare policies to the public, and the organizational sustainability supports the management of the NHS to perform accordingly to the needs and expectations of the public despite the economical condition of the country. It has been observed that the NHS is increasing its sustainability. The well-managed sustainability of the organization allows the organization's stakeholders to withstand critical economical situations (Lahana et al. 2019).

Effective efficiency-

The annual profitability and the increasing efficiency of the organization's sustainability have created several opportunities for the organization, as well as its stakeholders. The effective efficiency of the organization has allowed the organization to develop employee retention programs that have helped the organization restore the proper staff required for the job (Lahana et al. 2019). The management's capability to provide effective outcomes has allowed the stakeholders to balance the annual budget of the organization. Thus, the funding balance has allowed the organization authorities to improve both the primary and community health care services. The cost of transportation has also been reduced due to the improvement of authorities.

Task 2:

2.1 Analysis of the financial information

With respect to the NHS Act 2006, Section 13A, the financial report analysis of NHS England tends to reflect the governmental funding for the improvisation of the various aspects of the organization (Iacobucci 2021). This can be further justified through the financial support of the government in order to the expansion of its services for the initiative of the Long Term Plan. Moreover, with the various kinds of shifts in the functioning and the funding of the organization the projection of the total settlement is reflected in the increase in the amount even more than the approximate value of £ 33.9 billion.

The capital budget of the NHS England along with the target of revenue generation is considered to be set out through the projection of the spending amount of the previous years (Iacobucci 2021). However, the amount of capital to be invested in order to achieve the target rate of revenue generation is typically set through the management of NHS England. Moreover, the management of the NHS England has also decided to use this strategy till the financial year 2023-2024 in order to use this optimized budget strategy for its Long Term Plan along with its plans for the NHS Improvement strategy as well.

The financial movement of the NHS England is considered to be directed through the management of the organization. However, keeping respect to the Section 13A NHS Act of 2006, the publication of the financial report also reflects the setting out of the technical limits (Hammond et al. 2019). The financial report as directed by the management of the NHS England basically includes the amount of the revenue which was earned in the previous year that is going to be used for various administrative purposes. Moreover, this financial report of the NHS also highlights the various switches that are executed through the management of the organization in order to convert the capital into revenue generation (Croker et al. 2019).

The year




Expected Budget

 (£ Billion)




Achieved Percentage




Table 2: Allocation of the Budget

(Source - Self-Developed)

The financial expenditures of the NHS England are also considered to be based on the allocation of their budgets in order to provide commissions for the various kinds of services of the NHS. The Improvement section of NHS is also referred to be responsible for the allocation of the budget with respect to the financial control of the trust (Allen et al. 2021). In order to maintain the efficient balance in the financial allocation of the budget of the NHS, the Improvement section tends to work collaboratively with NHS England in order to align all of its prospects with the Long Term objective of the organization.

From the management of the NHS, the Government tends to expect the following principle which is typically focused on ensuring equal access for the needs of both the sections along with the allocation of the budgets for the same at its heart (Woodford et al. 2018). Moreover, the government also expects transparency along with ensuring that the changes must not result in the establishment of localized health economies.

2.2 Explanation of financial monitoring and control

The various approaches to monitoring the financial aspects of NHS England are reflected through the transition of the various shifts that are implemented in the present models of delivering the services (Wong et al. 2020). The new models are considered to be enabled with the efficiency of delivering the services as per the expectations of the outcomes that are identified through the analysis of the Long Term Plan. Along with the publishing for the implementation of the Long Term Plan, the management of the NHS has also decided to launch a workforce that will effectively monitor the various approaches to implementation.

The implementation of the interim workforce will also help in enabling the localized systems for the translation of the commitments into effective deliverables of the plans that are strategically prepared for the execution of the services by the NHS (Moran et al. 2018). Through the strategic planning of the system-level approach of the plans that are required to be implemented along with the incorporation of the various outcomes of the Government’s spending, the government will be able to monitor and take NHS into account for the delivery of their services.

Apart from that, the management of NHS England has also decided to monitor its continuous delivery of services to the patients (Aldridge et al. 2020). This basically includes the implementation of several workforces that will be responsible for the monitoring of efficient service to meet the requirement of the patients.

The Accountability Framework which is being published through the management of the NHS tends to project the reflection of allocation of the budget for the implementation of various services of the NHS England along with the NHS Improvement (Hammond et al. 2019). Moreover, through this framework, the collaborative working approach of both the segments of the NHS is effectively monitored and projected to the government along with the projection of the new models of providing services to the patients in order to meet all their requirements.

The management of the NHS has intended to implement the service along with aligning them with two high-level objectives (Aldridge et al. 2020). Moreover, in order to achieve the provision of services aligned with these objectives the management of the NHS has instructed the NHS England along with the NHS Improvement to work collaboratively with the inclusion of the Health England. The first objective of the organization typically focuses on the various procedures for the implementation of the Long Term Plan (Allen et al. 2021). Whereas, the second objective of the NHS management is considered to be ensuring the effective management of the implication and the risks that are associated with the EU Exit for the safety of health and care of the required patients.

2.3. Analyze the financial decision-making process

The effective financial knowledge and the management skills of the organization have enabled the authorities of NHS organization to take the required actions needed for the critical economical condition. The organization's decision-making process allowed the organization to judge the highs and lows of a financial decision and to plan necessary future decisions. In order to accomplish financial balance, the organization NHS has taken some financial initiative.

The improvement of structural organization-

It is significant to have an effective organizational structure to improve the organization's financial position (Rogoši? 2021). It has been observed that the respective organization NHS’s lack of nurturing of the financial management has caused the organization to face several financial challenges. The improvement of the structural organization has positively affected the organization's financial management. The improvement allows the management to concentrate on the financial history and data, which ultimately provides the organization with financial information. Furthermore, it enables the organization to develop financial systems, the system has provided a positive impact on the organization's resources.

The improvement of the retention program-

The employee knowledge gap has created additional costs for the organization. It was a challenge for the organization to solve the knowledge gap of the employees. In order to solve the problem, the decision-making management has improved the retention program of the employees. The retention program allowed the organization to hire appropriate employees for the required job (Keakopa 2019). Moreover, the program helped the organization to develop a healthy workplace environment. Furthermore, the management has invested in the training programs required for the employees, the training program has helped the employees to reach their true organizational potential. Thus, the improved workplace has enabled the organization NHS to perform according to the needs and expectations of the consumers.

Development of health economy-

The health sector is required to work with other significant health sectors to perform according to the needs and expectations of the consumers in critical economical conditions. It is also important that every sector in the partnership knows its particular role (Franken et al. 2020). The respective sectors' role in the partnership influences the organizational finance direction. For example, the NHS has increased its partnership with other sectors in the health economy. The healthy partnership with other sectors has allowed the NHS to affect its financial management and it has also allowed the organization to share the resources within the respective community. Moreover, the attribute of the organizational partnership has enabled the NHS to accomplish financial balance.

Financial planning-

The vital aspects of the financial decision-making process required the organization to analyze the organizational financial statement, estimate the initiatives and the financial projects, analyze the budget, and assess the organizational business performance (Elias et al. 2019). The organization NHS for example has performed some vital organizational changes to produce financial plans to deal with the organizational challenges. The service change planning has increased the organization's capacity and affordability. It allowed the organization to analyze the financial statement. The budget analysis of the NHS has helped the organization plan the levels of costs associated with the organizational plan. The assessment of the business performance allowed the NHS to identify the risks associated with the budgetary plans. Thus, it allowed the organization to take the necessary actions required for the financial arrangements to achieve the organizational target (Manes-Rossi and Orelli. 2020). Furthermore, it enables the NHS to focus more on the organizational priorities regarding consumers' needs and expectations.

Task 3:

3.1 Tender documentation for healthcare

Any public sector organisation releases a yearly tender document for the requirement of certain works, utilities and goods. Suppliers for that particular organisation can request tender documentation and with the help of this detailed document, any business can meet the scope and requirements for the entire project. In this aspect, the chosen sector for the tender documentation is the healthcare industry and the chosen organisation for the procedure of this industry is the NHS hospital of the UK. The processing of tender documentation is an important part of the tendering process. Thus, this tendering process of the HHS will help the buyers and the suppliers and the terms and conditions of this tender documentation will be based on the price, quality and social values.

In the modern era, tender documentation and document submission are generally done by the e-tendering process via maintaining the online procedures through an online portal. The tender documents are generally provided by the buyer's authority and deal with the proper requirements of the buyers in a contract notice.

3.2 Design criteria and a scoring system for evaluation of tenders for the organisation

3.2.1 Notice inviting tender

Responsible for NHS tender

The tender for the procurement of the NHS has split between different organisations such as the “Department for Health and Social Care” DHSC, NHS and PHE of England (Healthcare-tenders.co.uk, 2021). The DHSC is responsible for the budget-making process. On the other hand, NHS England is setting the strategy for the tender and the future procurements. PHE or "Public Health England" is responsible for dealing with the emergencies of the public health of the NHS, UK.

Commissions under NHS tender

The Group of local and clinical commissioning groups and the commercial services are the main commissions that manage the supply chain of the NHS (Lang, 2020). The "Crown commercial service" of the NHS spent over £15 billion to find commercial solutions for the customers of the NHS hospital (Nhsprocurement.org.uk, 2020). On the other hand, the technology, building, people, and corporate solutions all are dependable on the CCS services of the UK.

Two bid system

The NHS Health care services and the commission invite an online tender under the "two bid system" from the interested tenders for better services for the patients of the NHS (Thorntonandlowe.com, 2020). The two bids system shall be followed by the commissions and the responsibility for the NHS tender.

3.2.2 Online submission of the tender

Date and schedule for the tender

Sl. number


Date and time


Date of publishing the tender and other documents

10.06.2022, 12 A.M


Start date of the submission of the bid documents

10.06.2022, 8 A.M


Last documents of the submission of the bid documents

25.06.2022, 12 PM


Contract period

1 Year


Experience required

3 Years


Time allowed for technical evaluation

3 days

Table 1: Date and schedule for the tender

(Source: Self Developed)

Tender summary

Tender summary

Bid Details


United Kingdom


Contract notice on social and health care services of NHS hospital

Notice type


Ref. number



Cardinal Square, Nottingham Road

Postal Code: DE1 3QT

Town: Derby

United Kingdom

Brief description of the tender

Provide psychological and well-being services

Type of the authority

Governed by the public law

Annual turnover of the bidder

10 lakh

Table 2: Tender summary

(Source: Self Developed)

3.2.3 Process of online registration

  • Internet address (URL): “https://www.england.nhs.uk/”
  • Go to the homepage of the NHS and click the “online registration” link.
  • Then complete the procedures by filling up the personal details (England.NHS.uk, 2019).
  • An e-mail will be sent to the bidders.
  • Log in with the username and password
  • Click the detailed button for further navigation.
  • The registration charge is mentioned in that section.

3.2.4 General instruction

  • The tender has to be addressed to the “Chief medical department” of the NHS, UK.
  • "Arden & Gem commissioning support unit" on behalf of NHS has aimed to provide this online tender for the Social and Healthcare services of the NHS (England.NHS.uk, 2019).
  • During the holiday between the submission dates, the tender will be submitted in the next working days.
  • Only the proper technical bids will be considered for the procedure of the financial bid.
  • For further queries, the bidders are requested to contact the websites of the hospital.

3.2.5 Terms and conditions

  • The tender has to be submitted by following the prescribed online format and on the online form.
  • The bidders have to have a minimum of 5year's experience related to this field.
  • All the details are provided in Annexure 1 which is provided on the online portal of the registration.
  • This contract will be valid for the next 1 year.
  • The annual contract value is 201365 GBP per annum.
  • The terms and conditions will determine the ideal persona of the buyer.
  • The financier will be self-financed.
  • Security may be required for future circumstances.
  • There will be no advance payment for any kind of advanced booking.
  • Any dispute or disruption that may arise during the period of the tender of NHS may take care of by the authority.

3.2.6 Eligibility criteria

  • Prior information notice

The healthcare commissioner for the NHS will provide a PIN or Prior Information Notice (Healthcarebids.co.uk, 2021). In addition, it will be helpful for the advancement and that will help to develop and launch the procurement of the NHS. This PIN may be issued from 1 month to 12 months. 

  • Market engagement

In this stage, the commissioners may invite the potential bidders that can help to warm the market and can develop the market engagement. On the other hand, in this stage, the commissioners will develop the objective, scope and background of the tender of this NHS. It will shape the procurement process of the bidders of the NHS.

  • Invitation to the tender

This step will properly provide the proper instructions for the bidders of the tender. It is the contractual document that also includes the conditions for the entire contract. This stage will also specify the service-based pricing schedule.

  • PQQ

The tender process will also develop its procedures with the help of the PQQ or "Pre Qualification Questionnaire". It provides the potential information of the suppliers and it is the best ground for the exclusion. After that, the selected questionnaires will help the NHS to cover the financial and technical capacity of the hospital.

3.2.7 Scoring system

Psychological wellbeing services of NHS

Overall weighting


Category weighting


Element weighting













Service delivery












Social value


Customer care


Service quality




Environmental target


Opportunities for patients


Table 3: Tender scoring matrix

(Source: Self Developed)

This entire scoring system will help the NHS hospital of the UK to develop the idea for the future (Zemaitis, 2022). This will help the tender to precede with proper evaluation criteria.


It can be concluded that the organizational structure of the NHS has provided the organization the opportunity to operate and monitor its financial funding and limitations. The organization's decision-making process has allowed the organization to improve the financial strategies required for the growth and productivity of the organization. The interrelationship of the respective sector has helped the organizations to conduct efficient organizational decisions to govern the economic analysis of employee retention, transport costs, and material resources. Thus, it allowed the organization to work above self-interest and market competition. Moreover, interrelationship has influenced the organizational ethics of public service. Task 3 of this entire report; develop the proper idea of the tender documentation for the healthcare department of the NHS hospital in the UK. Proper design criteria and a scoring system for the evaluation of tenders for the organisation have also been elaborately depicted in this section.

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