"Fans at the show started talking about it among themselves and then they started collecting money to support Jon Town," Matthews said.
The Dave Matthews Band collected 23,000 signatures on its fan site for a letter requesting that Congress and the Department of Defense look into the personality disorder discharges.
"They're forever changed," Matthews said. "We should look after these kids."
Town's story also inspired 31 senators, including four presidential candidates, to write to Defense Secretary Robert Gates calling for an investigation into the military's use of the personality disorder discharge.
"We are concerned over continuing reports from veterans' services organizations, the media and individual U.S. service personnel that personality disorder discharges have been implemented inappropriately and inconsistently," the letter said.
Sen. Kit Bond, R-Mo., said, "We want to make this something that is widely understood and gain the momentum for necessary changes to the system."
Just today, six senators including Bond and Barack Obama, D- Illinois, introduced an amendment to the National Defense Authorization Act that would temporarily suspend personality disorder discharges for combat veterans until there is a comprehensive review of the current procedures.
Gates and other Defense Department officials declined to speak to ABC News, saying the issue was under review by the veteran care commission headed by Democrat Donna Shalala and Republican Bob Dole.
After all the recent attention focused on Town, the Department of Veterans Affairs recently began treating him and paying disability benefits.
Matthews was asked whether his actions had helped Town. "I think the push, the publicness of the whole thing had some bearing on that, and if it did, it's great that it did. But there are still a lot of other soldiers that need to have the same attention paid on their behalf."
At home in central Illinois, Donald Schmidt is waiting.
After this story aired on "World News" the Army contacted ABC News to say they offer a hotline for wounded soldiers and their families to report any concerns about patient care at 1-800-984-8523.
Dave Matthews Band Petition: http://web.davematthewsband.com/petition
Iraq War Veterans Organization: www.iraqwarveterans.org
Operation Helping & Heal: www.helpingheal.org
Veterans for America: www.veteransforamerica.org
Veterans for Common Sense: www.veteransforcommonsense.org