As a house rule we treat magical and herbal healing akin to DblandD.
If you magically heal or herbally heal someone to full health then most wounds are healed (negatives go away and fractures repair, nerve damage is healed, etc)
However, if you have something shattered (like a leg bone or whatnot) then you must get the appropriate level healer to come help.
This allows for, in most situations, the players to get stable after a fight...but the more sever wounds need to be healed by a high level healer (who doesn't charge much! LOL)
Also, as a house rule, I allow healers to get more powerful talents. This does nothing but help the players and doesn't hurt the balance of the game.
On a personal note: The reason I love Rolemaster so very much is that it IS so deadly. I am very tired of the "attrition to zero" that other game systems work from.
To me, a 1st level mage being able to one shot a level 10 fighter is what makes this system so great!