KotoR is an old school RPG where common sense dare not venture. Also, Jedi develop a crippling disease which causes their arms to fall off when they try and administer medical attention to others using anything other than the force!
As evilthecat said, you can't use items on others no matter which character you're currently controlling. I assume you know about switching control of characters by pressing Tab or clicking on their icon in the bottom-left corner.
I think you have to switch to that person to use it. You can't do it while playing another character. Just pause the action and switch and set everything up, you should be fine.
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