As long as you are eligible to make an HSA contribution, if you would not make an HSA contribution unless you fund it with a distribution from the inherited traditional IRA, it seems like a wise plan to use the inherited IRA to subsidize your funding of an HSA distribution. The deduction for the HSA distribution would offset the taxable income resulting from the IRA distribution and investment growth in the HSA would be tax free (if used for qualified medical expenses) instead of tax deferred if allowed to grow in the IRA instead.
Given the relatively small amount, even if you didn't use it to subsidize an HSA contribution it would still probably make sense to take it out of the inherited IRA and use the money to invest in capital investments on which growth would be taxable at long-term capital gains rates instead of at ordinary income rates. Not quite as beneficial as putting the money in an HSA but still probably beneficial over just leaving it in the inherited IRA and taking life-expectancy RMDs based on your age.
