I have the same problem. Kyra got the option to heal or to continue, selecting either freezes the game with no option of proceeding or backing out. None of the buttons are responsive when this happens. After quitting (using Force Stop), the game returns me to the moment where I have to choose to either contine or heal again, with the same results. I tried backing out and forfeiting before I make the choice, but when the choice is presented, the only responsive buttons are "Continue" and "Heal" so there is no way of preventing the game from eventually locking up.
As others have said, this is in Story Mode so there is no way of continuing without deleting the save and starting another, in which the same problem will present itself again, eventually.
Right now I have just quit the game at the moment the problem occurs and will wait for a fix. I hope this can be patched without me having to delete my save game