To amend title 38, United States Code, to authorize the Secretary of Veterans Affairs to increase the maximum market pay of physicians and dentists in the Veterans Health Administration who work in health professional shortage areas, and for other purposes.

VA Provider Pay Modernization Act of 2017 This bill provides that market pay (one of the three salary components of Veterans Health Administration [VHA] physicians and dentists) shall be the same for each physician or dentist with the same specialty or assignment in the same Integrated Service Network (VISN). The market pay of a physician or dentist may exceed the market pay generally available to a physician or dentist with the same specialty or assignment in the same VISN by up to 5%. Such amount shall take into account the pay in the relevant health service area, as designated by the Department of Health and Human Services. Market pay in a health professional shortage area for a physician's or dentist's specialty may exceed by up to 25% the market pay for a physician or dentist in a health service area with a specialty or assignment not relevant to the health professional shortage area. The VA shall: (1) evaluate the market pay of a physician or dentist every 12 months; and (2) in implementing a promotion system, create parity between the grades and annual rates of basic pay for VHA employees performing similar duties in the same facility, regardless of service time.