When it got so bad he bled, I would put something like neosporin or polysporin on it. I've heard using goldbond body powder all over their body helps (but was unsure so I have not taken that route). Otherwise what really helped for me this last time was we went to Walmart looking for an oatmeal shampoo but they were out, instead they had this Medicated Shampoo from Hartz (I know I'm usually not too fond of Hartz, either). HJ gave him a bath using it, and it worked! I don't know what it did but he stopped scratching almost immediately. Up until the bath we gave him a benedryl a day.

Another option for hot spots (I forget if its ok to use if the skin is broken) is they have the anti itch spray stuff, but we've never used that. I've heard it works though, especially on their paws.