Helper, your brother's wife sounds like a gem. Let's hope she continues to stick by him. Perhaps she could outright ask the doctor about an honest prognosis and if home Hospice could be implemented. He could even receive Hospice care in the hospital. You must realize, though, that once Hospice comes in, all treatment will cease except for pain meds or things that will help him feel better. Active treatment will not be implemented. But you might be able to get him home that way.
From your description of his hallucinations, it's obvious that encephalopathy has a good grip on him. Perhaps the increased Lactulose will help.
At least he recognizes your voice, if he is telling you he loves you. So keep talking to him, even if he is not comprehending what you are saying. I understand grieving for the person he once was. I went to see my aunt early last Dec., in another city, as I had a feeling she didn't have long. It was heartbreaking to see how much weight she'd lost, and especially her being unable to speak due to several strokes. She had always been very outgoing and gabby, and a "cut-up." She was bedridden in a NH, receiving Hospice care, and just a shell of her former self. She did recognize me, though, at least the first day. Then she slipped into a coma and died. Fortunately, she passed quickly and didn't linger. Also she was elderly. But she had literally gone from very healthy and active to what she was when she died in just a matter of a few months. It really was heartbreaking, but it would have been much worse if she just lingered for months or years, which does happen.
Enlist the wife's help in gathering information and also ask her about the possibility of taking him home for hospice care.
You need to take some deep breaths and be still, then perhaps pray for God's will for your brother.
Hugs,
Connie