For server side SSL, LTM will be acting as a client. So the app owner should generate a client cert from his server certificate. You can then install it on LTM. As you guessed, you should configure it for the server SSL profile and for an HTTPS monitor. The health monitor just needs to be assigned to the pool member(s) which you want to monitor--you shouldn't need to configure which LTM self IP addresses use the cert. The requests will be made from each unit's static self IP address to the pool members.
I think the server SSL profile can be configured to validate the CN of the server cert. I don't have a box in front of me to double check this. But you should be able to read the LTM config guide for your version or the online help for details.
Aaron
Nimbostratus
