Nursing Education and Quality of Health Care Act of 2006

Nursing Education and Quality of Health Care Act of 2006 - Amends the Public Health Service Act to require the Secretary of Health and Human Services to award grants to, or enter into contracts with, schools of nursing, health care facilities, or partnerships of such schools and facilities to educate nurses to serve in rural areas, including by developing distance learning education.

Requires the Secretary, acting through the Administrator of the Health Resources and Services Administration (HRSA), to award grants to such schools, facilities, or partnerships for the establishment of demonstration projects that will expand the number of nurse faculty within schools of nursing, including by developing recruitment programs and offering scholarships.

Allows the Secretary, in the case of a nurse faculty shortage, to obligate more than 10% of traineeships for advanced nursing education programs to individuals in doctoral degree programs.

Requires the Secretary to: (1) award grants to, and enter into contracts with, eligible entities to increase the nursing opportunities for individuals who reside in rural communities, including by increasing and expanding pipeline programs and supporting a web-based health care workforce development system; (2) award grants to entities for demonstration projects that advance the education, delivery, or measurement of quality and patient safety in nursing practice; and (3) award grants to collect data and study the potential benefits of basic and advanced nursing education levels or certification status in the efforts to promote quality improvement strategies and enhance patient outcomes and cost saving measures.