Medicare Payment Reform Act of 1983

Medicare Payment Reform Act of 1983 - Amends title XVIII (Medicare) of the Social Security Act to direct the Secretary of Health and Human Services to provide that payment with respect to services provided by a hospital in a State may be made in accordance with a State hospital reimbursement control system.

Requires the State system: (1) to be directly operated by the State or a designated entity; (2) to provide for hospital payments under a methodology by which rates or amounts to be paid for hospital services during a specified period are established under the system prior to the defined rate period; and (3) to provide that hospitals make necessary reports. Requires a State to assure that its system will not result in certain changes in hospital admission practices.

Provides for one-time grants to States to cover the technical assistance and administrative costs of establishing an alternative hospital reimbursement control system.