From: Financing intersectoral action for health: a systematic review of co-financing models
Financial mechanism | Definition |
---|---|
Revenue collection | |
 1. Pooled funds | At least two budget holders make contributions to a single pool for spending on pre-agreed services or interventions. This can be done at various levels (national, regional, local) and accessed in different ways (i.e. grants or regular budgetary system). |
 2. Aligned budgets | Budget holders align resources, identify own contributions towards pre-specified common objectives. Joint monitoring of spending and performance, but management remains separate. |
 3. Structural integration | Full integration of cross-sector responsibilities, finances and resources under single management or a single organisation. |
Purchasing | |
 1. Joint or lead commissioning | Separate budget holders jointly identify a need and agree on a set of objectives, then commission services and track outcomes. The commissioning itself can be done through a joint authority board or through one agency taking commissioning responsibility. |
 2. Cross-charging | The mechanism whereby a cross-sector financial penalty is incurred for the non-achievement of a pre-specified target. Cross-charging compensates sectors who incur an external cost from another sector’s poor performance. |
 3. Transfer payments | Sectoral budget holders make service revenue or capital contributions to bodies in other sectors to support additional services or interventions in this other sector. |