Children's Hospitals Education and Research Act of 1998

Children's Hospitals Education and Research Act of 1998 - Directs the Secretary of Health and Human Services to make payment as specified to each children's hospital for each hospital cost reporting period between FY 1998 and 2003 for the direct and indirect expenses associated with operating approved medical residency training programs. States that such payments are in lieu of certain Medicare payments to hospitals for inpatient hospital services, but shall not affect the amounts otherwise payable to such hospitals under a State Medicaid plan. Makes appropriations for such payments for such fiscal years.