Can the VA home refuse medical information from my uncles daughters?

Yes it is called the Health Insurance Portability and Accountability Act, HIPPA. The HIPAA Privacy regulations require health care providers and organizations, as well as their business associates, develop and follow procedures that ensure the confidentiality and security of protected health information (PHI) when it is transferred, received, handled, or shared. This applies to all forms of PHI, including paper, oral, and electronic, etc. Furthermore, only the minimum health information necessary to conduct business is to be used or shared. This is a Federal mandated law passed by Congress in 1996.