Not really though unfortunately the only way you're going to get more effectiveness is by being smart and creative but I wouldn't expect that from the state, cause it's the state.
What am I talking about?
A good doctor could save the state hundreds of thousands to millions vs the bad doctors. If the state upped the salary in Ohio from $155 to 190, they would get good docs and those good docs would save far more than the 40K price increase.
To give you a quick example, when I worked for the state, I got patients better in about a month that were there for years and did not get better. Was it because I was a unique genius? No. I am currently working with several docs in the university that IMHO are just as good as me and they too would've accomplished this feat. There's so many bad doctors in the state and several good doctors in a university setting.
Take one of those university docs and put him in the state system, he'd save at least several hundred thousands of dollars if he merely got 10 patients better in a month that were there for years. Each patient cost the system something on the order of $700 day (I'm off somewhere around $50-100/day) $700 x 365= $255,500 per patient. Now granted, if that person was put in a group home that too would cost money but the cost would be far less, more on the order of a few thousand per month.
But to implement this in a manner to get the better docs, they'd have to do things to make sure those docs were better and expect better work out of them. This is where the plan could fail cause it would involve people to actually give a damn and care and this is hard to make sure in happening in a state system.
In other states where state docs make good money, they've tried to decrease salaries before. I've seen it happen in the 80s. I was a teenager back then but a bunch of doctors are in my family. What happened is it got to the point where docs and nurses left because by cutting costs, the hospital went from semi-unsafe (e.g. dangerous patients but good guards appropriate measures in place) to very unsafe to the point where no one would work in the hospital to a degree where the state either HAD TO SHUT IT DOWN or raise pay to get more people to work there.
Bear in mind, there are constitutional/legal minimum standards a hospital has to abide be (established in the court-case
Wyatt v. Stickney.
http://www.treatmentadvocacycenter.org/component/content/article/345
If it's cut too much, it won't reach that minimal legal standard.
Where I worked, a guy just a few months ago became the new chief clinical doctor, Douglas Lehrer, and he's a phenomenal doctor. IMHO this guy could actually be that type of guy that could implement something that could work. He's good enough to be a private good doctor but for whatever reason wants to work for the state (IMHO likely because of his forensic interests and he's already heavily invested in the state retirement system but I'm speculating here).