Equity for Rural Hospitals Act of 1989

Establishes the Medicare Geographical Classification Review Board to decide on a rural hospital's application for classification as an urban hospital for Medicare payment purposes.

Amends the Omnibus Budget Reconciliation Act of 1987 to alter the Rural Health Care Transition Grant Program to extend and increase authorized appropriations for such program through FY 1992, and permit the Secretary to waive the hospital grant limit. Expands, from four to ten hospitals, a Medicare demonstration program covering additional costs incurred by teaching hospitals in sending their residents to rural hospitals for training.

Requires the Secretary to establish five-year Medicare demonstration programs covering costs incurred by five hospitals in providing clinical training to undergraduate nurses.

Extends the regional referral center classification of hospitals so classified as of September 30, 1989, and the payment rates applicable to such hospitals under the Medicare program, through FY 1994.