Elderly and Disabled Protection Act of 1998 - Declares that a nursing facility (including a skilled nursing facility), home health agency, or hospice program (covered facility) under the Medicare and Medicaid programs of titles XVIII and XIX of the Social Security Act may not: (1) employ an individual as a direct care employee unless the facility has requested from the State direct care employee registry a background check (including a criminal as well as an abusive work history background check); or (2) continue to employ such an individual if the background check report reveals a conviction of a disqualifying crime. Requires the covered facility to report to such registry documented findings of patient abuse by a direct care employee. Imposes civil penalties upon covered facilities that violate such requirements.

Defines "direct care employee" as a paid, nonvolunteer nurse aide, home health care aide, personal care assistant, private duty nurse aide, day attendant, housekeeper, library attendant, laundry assistant, or similar worker who performs nursing or related tasks involving direct patient care in a covered facility.

Requires the Secretary of Health and Human Services to establish methods by which State direct care registries can pool and share criminal background check summaries and documented findings of patient abuse (national registry coordination system). Requires each State to expand its direct care employee registry in order to carry out such background checks and other related functions, including reporting of summary information to the national registry coordination system.

Sets forth procedures for criminal and abusive work history background checks.