S.D. Codified Laws § 34-1-21
It shall be the duty of the Department of Health and said department is hereby empowered and directed to adopt such rules and regulations as are necessary to participate with the government of the United States in the administration of Title V of the Federal Social Security Act relating to services for crippled children and to maternal and child health services. The Department of Health is hereby designated as the sole state agency within the State of South Dakota to receive and administer and disburse federal appropriations, benefits, grants, and allotments made available to the state under said federal statute together with such funds as may be made available by the state. Said Department of Health is empowered, subject to chapter 1-26, to adopt all rules and regulations and make such orders and findings of fact as are appropriate or necessary to conform to the federal rules and regulations promulgated for the purpose of administering the activities referred to in said federal act and to conform to the rules and regulations of the federal agencies. Whenever the provision of medicinal care or the appointment of physicians shall be contemplated under this section, no standards for service or eligibility for appointment shall give any preference to graduates of any particular school of medicine.
SDCL 34-1-21