Heroin and health
Heroin is chemically similar to endorphins (Latin for 'morphine from within') and such is not highly toxic to the body. However, the body quickly develops a tolerance to opiates, and so those provided medically for pain killing purposes tend to have a reduced effect.
It is more the method of taking the drug, particularly by intravenous injection, that causes the detrimental health effects.

Short Term
Opiates cause a suppression of the cough reflex, putting users at greater risk of chest infections. They also cause constipation.
Particularly in users with a low tolerance to the drug, respiratory depression (overdose) is always a risk.

Long Term
The most common health implication of Heroin use is physical and psychological dependence. Again, changes in tolerance can cause an increased risk of overdose.

Due to lifestyle factors, and a common desire amongst users to spend money on the drug rather than on food and general healthcare and appearance can suffer (as suggested by the poster in the background).

The other common health implication of long term use is physical dependence. Stopping taking the drug once a user has become dependent on it results in 'withdrawal' symptoms, usually characterised by goose pimpled flesh (hence 'going cold turkey'), chills, anxiety, aches and pains, nausea, vomiting, diarrhoea (remember opiates make you constipated), sneezing, insomnia and cramps (to name but a few). Some people get muscle spasms that cause involuntary leg movements (hence kicking the habit).
However, unlike detoxing from alcohol or benzodiazepines, Heroin withdrawal is not considered life threatening.