Rural Health Care Equity Act of 2003

Rural Health Care Equity Act of 2003 - Amends title XVIII (Medicare) of the Social Security Act (SSA) to: (1) permit hospitals to allocate swing beds and acute care inpatient beds subject to a total limit of 25 beds; (2) eliminate the isolation test for cost-based Medical critical access hospital (CAH) facility ambulance services; (3) provide for a specified alternative adjustment to the wage index; (4) establish a single standardized amount under the Medicare inpatient hospital prospective payment system (PPS); (5) restore the full market basket update for inpatient PPS hospitals; (6) freeze at 6.5 percent the indirect medical education adjustment percentage; (7) provide for establishment of a rural community hospital (RCH) program; (8) remove certain barriers to establishment of distinct part units by RCH and Medicare CAH facilities; (9) revise the CAH program, making various specified payment-related changes; and (10) extend the Medicare rural hospital flexibility program for five years.

Directs the Comptroller General to study and report to Congress on wage indexing and placement of hospitals in metropolitan statistical areas.