A bill to provide for a greater utilization of the professional services of licensed psychiatric nurses in the medicare and medicaid programs.

Amends the Social Security Act to require skilled nursing facilities, under the medicare program, to have a licensed psychiatric nurse available, on at least a consultant basis, in order to furnish necessary psychiatric services, and to permit such nurses to perform specified medical and other health services which are performed by physicians.

Amends the medicaid program of the Social Security Act: (1) to authorize payment for professional services furnished by a licensed psychiatric nurse; (2) to prohibit payment for services furnished by any intermediate care facility or skilled nursing facility which does not have a licensed psychiatric nurse available, on at least a consultant basis; and (3) to prohibit payment for inpatient services furnished by a psychiatric hospital unless such hospital provides to licensed psychiatric nurses the same staff privileges which are extended to physicians.

Sets forth regulations governing the licensing of psychiatric nurses by the States under the medicaid program.