The act directs funding towards the construction of hospitals. At this time, only 4.5 hospital beds exist for every 1,000 people. In order to meet these shortages in hospital access, the Hill-Burton Act provides funds to nonprofit organizations for the construction of skilled nursing facilities that meet certain definitions and hospital-like building standards.

The act contains a "separate but equal" provision, which states that discrimination on the basis of race is acceptable if there is “equitable provision on the basis of need for facilities and services of like quality for each such group.”

Additionally, each new facility has to prove its economic viability, which means that few new hospitals are built in the poorest parts of the country. Nevertheless, the act rebuilds hospital infrastructure across the nation, including funding many Black and rural hospitals throughout the South.