Drinking water is generally safe, and is delicious in the mountains, but check with locals first. Many locals in bigger cities prefer to drink bottled water.
Albania has a wide availability of basic medical care and most medicine is easily available at the local barnatore (pharmacy). For anything serious head to Tirana, which has a large selection of private hospitals with English-speaking doctors and other care facilities serving the large foreign community in the capital.
Medical care is cheap by European standards, though prices can rise quickly in private clinics.
No vaccinations are necessary to enter Albania.
It's highly recommended to have comprehensive medical insurance covering you for your trip to Albania.