Smith-Wyden Rural Health Care Improvement Act of 1989

Smith-Wyden Rural Health Care Improvement Act of 1989 - Title I: Tax Provisions - Amends the Internal Revenue Code to allow a tax credit for family practice physicians, nurse practitioners, and certified physicians' assistants who serve in rural and medically underserved areas. Allows such individuals a tax deduction for education loan interest.

Title II: Provisions Relating to Rural Health Care - Amends title XVIII (Medicare) of the Social Security Act to provide coverage for clinical social workers in rural health clinics.

Directs the Secretary of Health and Human Services to make additional payments for Medicare-dependent, small, rural hospitals from October 1, 1989, and on or before September 30, 1994. Directs the Secretary to provide for an additional payment after October 1, 1994, for each critical access facility designated by the Medicare Geographical Classification/Critical Access Facility Review Board.

Establishes such Board to: (1) designate certain hospitals as critical access facilities; (2) hear appeals from rural hospitals which the Secretary determines do not qualify for treatment as being located in an adjacent urban metropolitan statistical area; and (3) conduct hearings with respect to the refusal of the Secretary to consider a hospital a sole community hospital. Requires the Board to report to the Congress on its activities.

Amends the Public Health Service Act to authorize appropriations for FY 1992 for area health education centers.