Medicare Equity Act of 2003

Medicare Equity Act of 2003 - Amends title XVIII (Medicare) of the Social Security Act (SSA) to eliminate the geographic physician work adjustment factor from the geographic indices used to adjust payments under the physician fee schedule.

Directs the Secretary of Health and Human Services to establish a demonstration project that provides for demonstration grants designed to provide financial or other incentives to hospitals to attract educators and clinical practitioners so that hospitals that serve beneficiaries under the Medicare program who are residents of underserved areas may host clinical rotations.

Amends SSA title XVIII to provide for the use of skilled nursing facility wage data under the prospective payment system for skilled nursing facility services.