My 4 year old beagle dog has a bad rash

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Hi all, I could sure use some help. My 4-year-old male beagle (King) has a bad rash around his anal area and tail (where it connects to his body). The skin is very red, and looks like a piece of raw meat. The area secretes a creamy pus substance. The area seems to be itchy, and there is some occasional bleeding.

He is being seen and treated by a local vet, but after almost four weeks, the rash has not improved one bit. His tail area also has some swelling, so we have to get him on his back and clean him every time he does his business. The vet has tried steroids, medicated powder, 3 different antibiotics. She had discovered that he is diabetic, and he is now receiving insulin twice a day.

We have tried using Gold Bond medicated powder, Butt Balm, A+D Diaper Rash cream, Aquaphor Healing Ointment, Neosporin, corn starch, and none of these have had any negative or positive effects.

He has lost his appetite, does not want his favorites foods, and is lethargic (sleeps most the time).

Here are some things to eliminate:
(1) He has been tested for allergies and everything has been eliminated that he is allergic to.
(2) The problem is not due to fleas or other insects.
(3) Not due to mange.

Any help or suggestions would sure be appreciated. We are willing to try anything to give him some comfort. Thanks for reading this!