HIV Treatment Improvement Act of 1997 - Amends title XIX (Medicaid) of the Social Security Act to require State Medicaid plans to make medical assistance available for HIV-infection-related drug treatment for certain HIV-infected individuals.

Amends the Public Health Service Act to modify the program for treatments for HIV disease, including providing for the inclusion of laboratory services in such program. Requires, as a condition for receiving Federal treatment drug program funding, that States allocated more than $1 million in HIV-related care grants for a fiscal year provide non-Federal contributions toward at least 20 percent of the costs the State will incur in carrying out such program. Revises the formula for determining the minimum grant allotment under such program to eliminate the distinction between States with less than 90 living acquired immune deficiency syndrome (AIDS) cases and States with more than that number.