This study analyzes the effects of healthcare capital stock expansion and modernization on health outcomes, specifically focusing on the impact of the Hill-Burton Act of 1946 on mortality rates at the county level between 1947 and 1971. Using an instrumental variable approach, I find that counties that received Hill-Burton funding experienced a statistically significant reduction in mortality rates, with a decrease of between 1 and 1.9 deaths per thousand in population compared to the mean deaths per thousand of 8.5. My results suggest that investing in hospital construction and modernization can have a positive impact on population health, highlighting the importance of ongoing efforts to improve healthcare infrastructure.