Pred is the first drug used. It may be a horrible drug as per side effects but it is a life saver and that's what's important. The docs will add an immunosuppressant to the pred as they are considered to be 'steroid-sparing' drugs. Once stable on both, you'll start weaning off the pred with regular blood tests especially before each decrease in dose. I have heard of some people who start on or are switched to Entocort (budesonide). It's also a steroid but different than pred. My understanding is it's expensive. Depending on what type of benefits for medications you have, you can discuss that with your doc.
As per immunosuppressants...if you can't take imuran, there's CellCept, Cyclosporine and my doc had mentioned Tacrolimus once.
I was never given any staging numbers as to my inflammation or damage...only told that I had severe damage but no cirrhosis. I have my pathology report and it says: large areas of hepatic necrosis with parenchymal extinction and early fibrosis, portal inflammation with lymphocytes and plasma cells, periportal piecemeal necrosis, lobular hepatitis with acidophilic bodies and minimal bile duct damage with bile ductular proliferation, no significant steatosis. But now I am off the pred and only on 100mg of imuran. I was diagnosed in Jan '07. You'll know when the inflammation is gone when your numbers return to normal.
Why do you need to be in the hospital for more tests? I suppose countries outside of the States tend to keep you in hospital more to run everything at once.
Keep us updated on your treatment and how you're feeling.