Partial Hospitalization Services Integrity Act of 1997

Partial Hospitalization Services Integrity Act of 1997 - Amends title XVIII (Medicare) of the Social Security Act to: (1) deny coverage of partial hospitalization services in home and skilled nursing home settings; (2) provide for new qualifications for community mental health centers as the Secretary of Health and Human Services may specify to ensure the health and safety of individuals being furnished mental health services and the effective or efficient furnishing of such services; and (3) authorize the Secretary to establish by regulation a prospective payment system for partial hospitalization services provided by a community mental health center or hospital to its outpatients. Directs the Secretary to: (1) provide for periodic re-certification to ensure that the provision of such services complies with appropriate criteria under the Public Health Service Act; and (2) implement a demonstration project under Medicare part B (Supplementary Medical Insurance) under which community mental health centers may offer expanded partial hospitalization services which are not currently covered as such under Medicare for purposes of providing for a full continuum of ambulatory behavioral health care services.