Adolescent Pregnancy and Parenthood Act of 1988 - Replaces title XX (Adolescent Family Life Demonstration Projects) of the Public Health Service Act with a new title on services for pregnant adolescents and adolescent parents.

Authorizes the Secretary of Health and Human Services to make grants and enter into contracts to provide authorized services to certain pregnant adolescents, adolescent mothers, and the qualified relations of such adolescents. Includes among authorized services: (1) comprehensive prenatal and postpartum care; (2) well-baby and well-child care; (3) family planning methods and services; (4) family life and parenting education; (5) education and referral regarding sexually transmitted diseases; (6) counseling and referral; (7) aid in obtaining health, mental health, and social services; and (8) other appropriate services.

Sets forth priorities in making the grants and contracts.

Requires that applicants for the grants and contracts agree to: (1) give priority to the provision of services to low income individuals and others who have limited access to such services; (2) not require an individual to accept authorized services as a prerequisite to other services or assistance; (3) provide services only on a voluntary basis and only after advising of the benefits and risks of each of the options available; (4) encourage the individual, to the extent practicable, to seek the assistance of the individual's family, and (5) encourage community involvement in the planning and implementation of the program.

Requires that charges imposed by the applicant, if any: (1) be made according to a public schedule; (2) not be imposed on individuals below the poverty line; and (3) be adjusted to reflect the income of the individual.

Prohibits applicants from making items or services available which can be covered by any State compensation program, insurance policy, or Federal or State health benefits program, or by an entity that provides prepaid health services.

Limits administrative expenses to ten percent of the grant or contract. Sets forth reporting requirements. Authorizes appropriations for FY 1989 through 1991.