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Vertiginous decentralization has substantially changed the shape of governments in the developing world during the last four decades. As a result, policy responsibilities are spread along the hierarchy of government levels, from national to local. Thus, second-tier governments usually operate as mediators between national and local governments. Usually, they are expected to play a role in attracting and allocating resources for local projects, as well as overseeing local government activities. However, little research has empirically explored these roles of subnational governments in the context of unitary but decentralized countries which are typical of the developing world. This paper explores the relationship between subnational government capacity, local government capacity, and the provision of health services in Colombia. While health provision is mostly a responsibility of municipalities through public hospitals and health centers, subnational governments monitor and collaborate with local governments to ensure service provision. The paper uses a panel dataset for over 900 municipalities in the 32 departments (subnational governments) of Colombia over the 2004-2013 period. Health provision is measured as enrollment in health insurance, low weight births, and infant mortality. Subnational government capacity is gauged in two different ways. Resources invested in co-financing local health projects operationalize the capacity of departments to act as partners of local governments. Health department’s operating expenses serve as a measure of capacity to monitor municipalities. At the local level, health-related spending operationalizes municipal capacity to provide health services. This project aims to contribute to the literature in intergovernmental relationships beyond the case of federalism, as well as to advance the discussion about the role of second-tier governments in the developing world.