The PDR does not list hepatitis (or elevation of liver enzymes) as a significant side effect of Iodine.
There are many reasons why the liver enzymes can be elevated. Many medications can do this - including Tylenol, Ibuprofen and Aleve. Viral and autoimmune hepatitis as well as anatomical abnormalities can also increase the liver function.
I would discuss whether your wife is taking enough of the pain medications can cause the elevation, as well as repeating the enzymes off the medication. I would also test for a hepatitis screen and obtain a liver ultrasound to evaluate for any liver or gallbladder pathology.
Followup with your personal physician is essential.
This answer is not intended as and does not substitute for medical advice - the information presented is for patient education only. Please see your personal physician for further evaluation of your individual case.
Thanks,
Kevin, M.D.