They were using him to get to Katniss and then they were planning to kill him.
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I'm not sure what you mean, but he takes pills....he takes medicine. On the first night, when the Career pack kills a girl near Katniss who is trying to light a fire, Peeta is the one to 'finish her off' and there are comments from the Careers about how he is handy with a knife. This suggests Peeta got hold of at least one knife in/ around the Cornucopia.
It was medicine for Peeta's leg
Well, Peeta runs away from the career pack after Cato slashes him in the leg with a sword. Now he has an injury on his leg!
The career pack is Clove, Cato, Glimmer, Marvil, and Peeta.
He's good. He's joined the Career pack and so is well fed, hydrated and fit and healthy. Due to the 'wall of fire' mentioned at the end of this chapter, there is a chance that he was burnt as in Chapter 20, Katniss says he has a few burns when stripping him down and washing him. All round, the Careers take care of him to find Katniss, but they injure him when he betrays them by letting her get away (after the tracker-jacker incident)