You're very much correct. However, as you play, you find yourself with a ray gun and an alien shield. this makes you immune to any damage from the trash mob (raccoon) and insta-kills quickly. Once I realized that, I sold my health kits and continued with my day. When you start the quest that brings you to the battle with the bully (the one I was stuck on), you're not allowed to leave the school until you have all the required items. Since I had no notice that I was going to get stuck in the school, I was stuck inside with no health kits because my caveman brain said "these useless" and chucked a very important item at a poor cashier that didn't deserve such abuse.