Italian hospitals are public and offer completely free high-standard treatments for EU travellers, although, as anywhere else, you may have a long wait to be served. Emergency assistance is granted even to non-EU travelers. For non-emergency assistance, non-EU citizens are required to pay out-of-pocket, there is no convention with US health insurances (although some insurance companies might later reimburse these expenses).
Water in southern Italy might come from desalination and sometimes may have a strange taste, due to extended droughts. If in doubt use bottled water. Elsewhere tap water is perfectly drinkable and very well maintained. Or else, a "NON POTABLE" warning is posted.
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