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Healing in Jagged Alliance 3 is crucial unless you want to leave a trail of allied corpses on your way to The Major's camp.
Haemimont didn't hold the players' hand in this case and let them figure out the healing for themselves, although it looks very intuitive once you get to know it.
There are four ways to heal your team - manually, with time, using the treatment operation and using a hospital. Additionally, you can use Grit to prevent damage in the first place.
Manual healing
This is the one you will be using in exploration mode and in conflicts. You need to have a medkit or a first aid kit in your merc's inventory to be able to do this. When you have the equipment, the merc will get a new icon on their hot bar in the form of two crossed bandaids. You can click it and then click on the wounded merc to either have the medic heal themselves or their ally. Alternatively, you can use the hotkey, the default is "N", and then click on the wounded merc. You can use the same option to stabilise a downed merc to prevent them from bleeding out.
The only difference between med kits and first aid kits is that the latter heals less.
The healing amount depends on the Medicine stat of the merc using the supplies as well as their perks, which can allow 20 per cent more healing and even add Grit to the target.
Manual healing can't cure wounds that reduce a merc's maximum HP.
Time
"Time heals all wounds" is true in JA3. If you travel with wounded mercs, you will notice they heal slowly over time. This means they will heal lost HP and get rid of wounds that reduce max HP but it's very slow. When you are doing long operations like scouting or training militia, it may be good to not waste meds on wounded mercs since they will regain some health on their own.
Treatment operation
This is the meat and potatoes of healing mercs. It can be accessed in satellite view and depending on your mercs' medical proficiency, it shouldn't take long to top one's HP off. This costs meds so make sure you don't run out of the precious supplies.
Hospital
Hospitals are exactly the same as Treatment operations but they don't cost meds and are completed in about one hour, making them much faster. The downside is that you can only use this in sectors that have hospitals that you control and treatment costs a whole lot of cash. It is not recommended to use hospitals until you have significant income from multiple mines.
Grit
This is technically not healing but it can prevent your need for it as it is temporary HP that gets added on top of the merc's total. Whenever they take damage, Grit is depleted before HP.
Grit is gained through perks and special skills. For example, melee attackers with the correct perk can gain Grit on each kill, Igor's special skill gives him Grit and increased melee damage, Scully's passive gives grit to all allies that finish the turn around him and medics can take a perk that provides grit when they bandage someone.
