KInda odd you guys mix a dev forum with a general discussion forum but.. o.k... whatever floats your boat. Kinda confusing to know where to post.
I've had a heal minor wounds since the beginning and also bought a hearth heal but that takes a crap ton of magica I don't have even though my restoration is at 55 and intelligence is at 53 - still cant use it. In Oblivion I'd simply look for the next higher spell i'd be likely to use such as heal major wounds but Morrowind/Morroblivion doesn't have that spell (that I can find) . So, I'm looking for the next spell up from heal minor wounds - what is that spell? Thanks.

Short answer: Buy a custom
Short answer: Buy a custom spell from the Mage's Guild. This is the Morrowind solution to all needs for an intermediate level spell.
Also: there are many magic balance mods available for Morroblivion/Oblivion. It's difficult to discuss magicka cost and relative effectiveness of any spell without knowing which if any mods you are using. I personally use morroblivion-magic-fixes + Lost Magic OBME, which I feel makes a playable compromise between Morrowind's slow but initially powerful magic theme and Oblivion's fast and initially weak play theme. If you are not using any magic balance mods, then hearth heal is (IMO) not worth using. However, I've tried to tune it in morroblivion-magic-fixes to act like it did in vanilla Morrowind -- i.e., to be used in an "oh crap!" moment at early levels to give you a life-saving big health boost at the cost of draining most of your magicka.
For easy reference on magic mods and other morroblivion mods, you should check out Diana TES GotH's Morroblivion Modding Guide.