38 CFR 13.71 - Payment of cost of veteran's maintenance in institution.
(a) The payment of part of compensation, pension or emergency officers' retirement pay for the cost of a veteran's hospital treatment, institutional or domiciliary care in an institution operated by a political subdivision of the United States may be authorized as provided in paragraph (b) of this section when:
(1) The veteran is rated incompetent by the Department of Veterans Affairs.
(2) It has been determined the veteran is legally liable for the cost of his or her maintenance, and
(3) The institution's representative has asserted or probably will assert a claim for full maintenance costs.
(b) Subject to these conditions and the further condition that the responsible official of the institution or political subdivision will agree not to assert against Department of Veterans Affairs benefits any further claim for maintenance during the veteran's lifetime, the Veterans Service Center Manager may agree with such official to the payment of the veteran's benefits through an institutional award to be applied to:
(1) A monthly amount determined by the Veterans Service Center Manager to be needed for the veteran's personal use,
(2) An amount to be agreed upon to be accumulated to provide for the veteran's rehabilitation upon release from the institution, and
(3) So much of the amount of the benefit as remains not exceeding the amount the Veterans Service Center Manager determines to be the proper charge as fixed by statute or administrative regulation, to the cost of the veteran's maintenance.
(c) Upon execution of an agreement as provided in paragraph (b) of this section, the Veterans Service Center Manager will certify the total amount to be released to the chief officer of the institution.