The alliance, which includes senior staff from both islands, will meet six times a year and report to political leaders quarterly.
The primary purpose of the alliance is to provide a forum for collaboration and partnership on the design and development of health and social care services.
The Government said that the guiding principles for the alliance are:
• Making health and social care services more integrated and resilient across Jersey and Guernsey.
• Focusing on opportunities for joint working and collaboration for the benefit of both islands.
• Enabling health and social care service developments that are affordable and sustainable.
It will focus on areas including mutual support, delivery of health care, procurement resource management, recruitment and training and education.
Health Minister Tom Binet said: “It is becoming increasingly important for our islands to share resources and information that will strengthen the sustainability of our health and social care services and provide greater value for money.
“There are many avenues to explore in this arena and although it is early days, I look forward to working closely with Guernsey and developing a clear direction forward.”