New York Medicaid Reform Nadler - Tushman Congruence Model

NEW YORK MEDICAID REFORM NADLER- TUSHMAN CONGRUENCE MODEL

There are numerous techniques to implement organizational change. The Medicaid Office of New York was undergoing a massive restructure to align itself with the continuous forward movement of the Medicaid health care system. This paper will analyze the changes that took place inside of the New York Medicaid system using the Nadler- Tushman Congruence Model.

The Nadler- Tushman Congruence Model is used to help leaders understand, and predict, the important patterns of organizational performance and behavior (“Congruence Model”). The Nadler- Tushman Congruence Model will be used to analyze this case, and to bring forward any limitations that the Model has. The paper will also explore how the Nadler- Tushman Congruence Model compares to the McKinsey 7S Model for this case.

New York Medicaid Reform

Medicaid was created in 1965 when President Lyndon B. Johnson signed amendments to the Social Security Act. Medicaid is a federal program that is overseen by each individual state in the United States to include the program in New York (Koba, 2011). Medicaid is health insurance for people with restricted incomes and limited assets. As of 2014, Medicaid served approximately 80 million people at a cost of $438 billion dollars (Policy Basics, 2015).

A plan was put in place for New York’s Medicaid program to undergo an organizational change. At the forefront of this change was a plan to continue to serve the community while the change was taking place. While the system was being overhauled, services, and organization, still needed to be in place to serve the customers. This process will be evaluated using the Nadler- Tushman Congruence Model.

Nadler- Tushman Congruence Model Explained

The Nadler- Tushman Congruence Model tells us that in order to understand how an organization performs, one has to understand the organization as a system that consists of four basic elements ("Congruence Model")

The Nadler- Tushman (NT) Congruence model begins with Inputs. The components of the Inputs are: Environment, Resources, and History. From these Inputs a strategy is devised and sent into the Transformation Process.

The Transformation process consists of four elements that, much like the McKinsey 7S Model, are inter-related and must mesh with each other for the process to work. The four elements of the Transformation Process are:

• Task

• Individual

• Formal Organizational Arrangements

• Informal Organization

During this process the elements are melded together and pushed to the final stage; Outputs. During the Transformation Stage many questions are asked,