Yes, it does. If you want to try it out, I suggest going back to the tavern (or your house) with both your health and will not fully recovered. Sleep on the bed and voila! Both your health and will bar will be recovered back to normal. 
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"Every time I hear a person saying, 'PC games are dying,' or 'PC games are dead,' particularly if they're a competitor, I fully agree with them--and I encourage them to get out of the space as soon as possible, just so I don't have to compete with them," -Tim Holman, Senior Producer for Company of Heroes
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