What is the pathophysiology of hepatitis?

Although HCV can be found in multiple sites throughout the body鈥攊ncluding the liver, peripheral blood mononuclear cells, dendritic cells, epithelium, and even the central nervous system, HCV replicates in the hepatocytes. However, it is not directly hepatotoxic. Viral replication occurs through an RNA-dependent RNA polymerase process. Lymphocytes recognize infected cells and initiate an immune response to control the virus. Viral clearance is associated with the development and persistence of strong, virus-specific responses by cytotoxic T lymphocytes and T helper cells. Because of the rapid evolution of diverse quasispecies within an infected person, even a brisk B cell (eg, antibody) response to hepatitis C has been inadequate to clear the infection, as the virus represents a "moving target" to the immune system. For the same reason, the progress in development of a vaccine to protect patients from an initial infection has been slow.7

Damage to the liver parenchyma is mediated by inflammatory cytokines. Persistent inflammatory mediators activate stellate cells in the liver parenchyma and this results in various degrees of hepatic fibrosis. Why some patients develop progressive fibrosis and eventually cirrhosis and others do not is unknown, but some predictors of progression have been identified, and include male sex, age at onset of infection, and the use of alcohol.

--HCV (Hep C) is notorious for causing chronic viral hepatitis.
--The virus enters and injures hepatocytes
--Chronic inflammatory response develops
--Eventual progression to cirrhosis resulting in liver failure and death Source(s): http://www.clevelandclinicmeded.com/dise...

Viral? The virus itself does not harm the liver, however, by hanging out there it causes an immune response that results in inflammatory changes. The chronic inflammatory state is what damages the liver. So basically in the presence of the virus our body wages war on our liver, hurting it, killing it and turning it cirrhotic.
in hepatitis, the liver cells get infected by viruses. thus they swells up as there is inflammation. thus the bile ducts in between the cells gets obstructed rasulting into rise of bilirubin in blood. decrease activities of hepatic cells also adds to it. thus jaundice occurs
The word hepatitis means - inflammation of the liver. This can be caused by a multitude of reasons:
viral - the cells of the liver are attacked by a virus
bacterial - the cells of the liver or the ducts of the portal system are irritated and subsequently infected for some reason, i.e. gall stones
drug induced - whether licit or illicit, most drugs are metabolised and excreted by the liver. In large doses these can become toxic to the liver and hepatitis can occur.

Your question on pathophysiology should be more specific to what the potential cause of the hepatitis is however generally, it is just the basic inflammation of the liver cells reducing the efficacy of the organ thereby potentially causing multiple problems.
Registered Nurse