This article describes the concept relevant principles and milestone about policy. Based on William Dunn framework, it also tries to describe the purposes of policy analysis and its implementation that are needed on health decentralization. In Indonesia the health decentralization has been implemented for some years but policy analysis is understood as regulation analysis which has been directed by the Department of Health. At present, the implementation process of the health decentralization, the central government has double function as policy makers and performer. In fact based in regulation the responsibilities has been delegated to district government. Understanding the policy analysis on the implementation of health decentralization would provide challenges to interpret in accordance with local specific condition.