I asked my sister in law to check out the Alzheimers unit in Vineland, nj. Va hospital. She said she would need $125,000 up front or they would have to be basically on medicaid .She has been turned down by VA. Does a soldier have to be wounded to receive any benefits?
It might be a good idea to consult a lawyer who is experienced with the VA. They can help you protect your brother's assets while getting him the care he needs.
There are some benefits available that are not associated with whether the veteran was wounded or not. Here is a link to a question and answer page, there is more available on the VA website if you poke around. Aid and Attendance should be available. I am just sharing what I remember from my brother's experience, so this is not a comprehensive answer, but I do think your brother is getting a bit of the runaround.
Was he honorably discharged? Or was he medically discharged?
What are his current finances. He may need to get medicaid in addition to what the VA can do, but he is eligible for some VA care.
If he needs long-term care, they can provide it in one of their veteran's homes, and (this is just skimming the surface) they will not charge him directly if he has no financial resources, but they WILL charge the bill against his estate. When he passes, they get their cut first.
Do go directly to the VA website, and also hunt for a veteran's advocacy group near you. They can guide you.