1. Short title This Act may be cited as the VA Provider Pay Modernization Act of 2017 . 2. Market pay for physicians and dentists in the Veterans Health Administration in health professional shortage areas Section 7431(c) of title 38, United States Code, is amended— (1) in paragraph (3)— (A) by striking The and inserting Subject to paragraph (5), the ; and (B) by striking determined by the Secretary on a case-by-case basis and inserting the same for each physician or dentist with the same specialty or assignment in the same Veterans Integrated Service Network ; (2) in paragraph (5)— (A) by striking The and inserting Subject to subparagraph (C), the ; (B) by striking shall take and inserting may exceed the market pay generally available under paragraph (3) to a physician or dentist with the same specialty or assignment in the same Veterans Integrated Service Network by an amount not to exceed five percent of the total pay of such physician or dentist, taking ; and (C) in subparagraph (C)— (i) by inserting (i) before the health care labor market ; (ii) by striking all that follows dentist and inserting in the relevant health service area, as designated by the Secretary of Health and Human Services under section 5.2 of title 42, Code of Federal Regulations (42 C.F.R. 5.2); and ; and (iii) by adding at the end the following new clause: (ii) whether the Secretary of Health and Human Services has designated under section 332 of the Public Health Service Act ( 42 U.S.C. 254e ) such health service area as a health professional shortage area with regards to the specialty of the physician or dentist, in which case market pay for the physician or dentist may exceed, by not more than 25 percent, the market pay for a physician or dentist in such health service area with a specialty or assignment not relevant to the health professional shortage area;