I would get a second opinion; blood in the urine is not normal.

You need another vet. He could be eliminating in other places because he's associating the litter box with pain on urination. (Potential Cystitis or FLUTD.) Did the vet offer any advice or additional testing or meds or diet change?

The vet said to take him off dry food and increase canned food, which I've done. Also his ph level is 6.5 and should be around 6 but she said this is still within normal range. I am going to try a RX canned food that she said will 'encourage' him to drink more water but he already drinks more water than any cat I've ever seen. He probably drinks more water than my 50lb dog- and has all the years I've had him. He'll sit in the sink and drink from the running faucet for 10 minutes or so 5+ times a day and drinks from his water bowl and any glass I leave in his reach. I'm willing to try anything though. I'm spending a lot of time and money scrubbing floors and walls. I added another litter box yesterday, even though the two cats have always shared one, to see if it helps. I am picking up a UV black light today to see if there are places he is peeing that I haven't discovered yet. The vet did not recommend any other testing. She said we could x-ray but she didn't think it was a stone so would probably be a waste of money.

That your cat shows such a huge thirst drive can indicate impaired renal function, among other possibilities. Peeing outside the pan is far more often physiological than psychological. UTIs are actually not common in felines, but cystitis is. Idiopathic cystitis is a common affliciton in cats. I'd recommend another vet, and soon. Yours doesn't sound interested in your cat's health.

One of our cats was drinking lots of water when he had developed diabetes.

Another was drinking lots and peed bloody urine in the bathtub when he had developed bladder crystals and kidney problems.

Both required vet care, and they improved with medication and special food designed for their ailments.

Please see another vet as soon as possible, because sick cats can go downhill VERY fast, especially with kidney problems and bladder crystals or stones possibly leading to urinary blockage.

As I posted above- he just had full tests. No renal or organ failure, no diabetes. No sign what-so-ever of physical illness except traces of blood in urine and peeing outside the box. He didn't even test positive for crystals-it was inconclusive- so likely just starting. His labs showed nothing wrong... I cleaned (many, many times) the walls and floors where he peed, I eliminated dry food, I got a new fountain type bowl- even though he didn't have an aversion to water. I started a PH balancing supplement and brewers yeast. I started a super healthy canned food (minimal carbs, low magnesium etc), i added an additional litter box. He hasn't peed on the floor yet today. please wish us luck- we need it!! I thank those of you that have responded!

I do wish you luck, and it is good to hear that you are working so hard to help him.

It is obvious how much you love your kitty cat.

I offer you much luck. I had this problem with my older cat, Maddie a few years ago. Despite a clean bill of health she continued not only peeing outside the box, but pooping as well which made me think it was psychological. In desperation, I took her and three litter boxes to my large cool carriage house..(this was summer) with toys , her bed and food and water and she continued to do it outside the boxes even tho she was not being bullied or intimidated by the other cats. I never did figure it out and lived with it till her death. I miss her but not the daily hassles. I live with 5 indoor cats now and thank heavens all is well in that respect.

I've had the same problem with my 8 year old cat..she will go in her box and then for no apparent reason she will pee on the floor next to her box..I have 2 cats and the litter box is the kind that has a top cover..I went out and bought a 2nd box with no cover and put fresh litter in it and showed it to her. She was fine,went in her new box for several months and then started doing it again. I can't explain why some cats do this but I do know that I have to keep the box very clean with fresh litter in it for her. I also went out and bought "puppy training pads" and taped them all around her box so she would pee on those rather than the carpet if she decided to get in one of her moods.That way you can just pull the soiled pad up and replace it with a fresh one..but be sure to tape them down since a cat will scratch the area and the pads will end up in a big heap if you don't. A good way to clean cat urine from carpet is to first buy a hand held steam cleaner and steam clean the area as well as you can sucking up as much of the urine as you can possibly get..then make a mixture of Hydrogen peroxide,baking soda and one squirt of dish soap..any dishsoap works and I usually fill a plastic cup with the hydrogen peroxide,dump several tablespoons of the baking soda in,squirt the dish soap and then mix it very well...pour the mixture over the affected area being sure to get it all and pat it into the padding under the carpet..you pretty much want to soak the area..let it dry for a few days and then vacuum it up well..if you can still smell the urine when you put your nose to the carpet then repeat the entire process including steam cleaning it again..then pouring the mixture on and letting it dry...it does take some work but it's worth it(I'd rather spend some time cleaning the area well than having my house smell like cat pee yuck)!!!..once you've used this mixture you literally cannot smell the urine in the carpet even if you put your nose to it. A small steam cleaner is a must if you have a cat that's doing this., You can even use the mixture on tile grout and since I moved and my litter box is now on wood floor,I've had to pour it on a small area of the wood once or twice..it discolored the area slightly but I just used some wood stain after I treated it...hope this helps! I feel your frustration!
A good tip to cut down on the "litter box smell" in your house is to use the crystals instead of scoop litter..I started using it a few years ago and would NEVER go back to scoop litter again! It costs a little more but lasts much longer than scoop litter and has absolutely no cat urine smell even after a few weeks..I still use a scoop to clean the droppings out every day but as far as the urine goes..all you have to do is give the litter a good stir every few days with your scooper..It should last about 1 month if you have 1 or 2 cats..depends on how much they go outside.