(1)An NHS body may, on such conditions as may be prescribed, after consulting the local authority in question, make payments to a local authority towards expenditure incurred, or to be incurred, by the authority in connection with the performance by them of such function of that authority as may be prescribed, being a function which, in the opinion of the body—
(a)has an effect in relation to the health of individuals;
(b)has an effect in relation to, or is affected by, any function of that body; or
(c)is connected with any function of that body.
(2)This section is without prejudice to section 16A of the 1978 Act (power to make payments towards expenditure on community services).