Hydrocortisone creme is the wrong train in the wrong direction on the wrong track. Steroids represent an immune system depressant. They interfere with healing. It is difficult to ascertain the etiology of the redness. It could be a persistant bacterial infection, which is made worse by antibiotic cream, and will get even worse when a steroid is applied.
A difficult question to answer. There are viral infections and bacterial infections, but there are also mycobacterial infections, which are a kind of bacteria without cell walls and they are very resistant to antibiotics, which work by interfering with cell replication. If there is only inflammation, a topical DMSO cream will (available at heath food stores), work. And vitamin E will help. If there is a mycobacterial infection oral antibiotics are necessary and that will probably be a fluoroquinalone, such as Cipro, which work on DNA gyrase. This is one of those situations that requires an in-person consult with a physician who will take a few minutes. The chances are the area will lighten on it's own, as your physician suggested. I am not a happy camper with steroids because they interfere with healing.
I wouldn't use any type of steriod cream bc they can actually make things worse. Let it heal on its own.