I can confirm this. It makes you sick, then deals with the sickness, curing you of it.
May 10 2016
I'm getting the "drank water from the pond" from drinking directly from a well.
Ive noticed this as well and was going to add a bug report, but hey you got here first. Many times I hover over an item and nothing, Ill then switch to inventory screen and its in there, so I know its a useable item.
I have experienced this as well.
Was wearing short sleeve shirt, put on work gloves, OH NOES, Ive got white arms.