The distribution of the Special Allocation Fund (DAK) is regulated in article 108 of the Law on Fiscal Balance between the Central Government and Regional Governments (Law No. 33 of 2004). DAK aims to provide incentives to local governments to carry out special activities that are usually a priority for the central government. However, the implementation of DAK policies often experiences deviations between the central and local governments. The implementation of DAK policies at the Health Office in South Sulawesi Province in the form of operational costs in the health sector, delivery insurance, accreditation of health centers, POM, communication as well as medicines and health supplies also has the potential for these deviations. This study aims to analyze the implementation of the Special Allocation Fund (DAK) in the Makassar City Health Office and Bantaeng Regency. This research uses a qualitative approach with the type of case study research. Data collection techniques through observation and interviews. The data analysis technique used triangulation technique and then analyzed qualitatively through data reduction, presentation, verification and drawing conclusions. The outputs that will be produced in this research can support the development of a road map issue on Health Care, especially Health Economics and Policy. The targeted output in this research is the publication of articles in reputable international and indexed national journals. The results of this study indicate that the implementation of the distribution of the Special Allocation Fund (DAK) at the Health Office in South Sulawesi Province has been running optimally although there are still some obstacles in its implementation.