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The interferon also causes platelets and the white blood cell that protects us from bacterial infections (called neutrophils) to be destroyed, also. There is a second "rescue" drug like Procrit that can cause the bone marrow to produce extra neutrophils.
The treatment is dangerous and that's why he has to get so much bloodwork done, so frequently. The interferon/ribivirin treatment to destroy the hepatitis C virus is more beneficial than the blood damage, though, and those problems will resolves on their own after he finishes the treatment.
I have not heard of a puffy face as a side effect, so maybe it should be brought to his doctor's attention.
It's wonderful that you are such a good, supportive daughter. Learn everything you can about the disease and its treatment and it will be less alarming for both of you. Good luck to your dad.