I can well believe that this is an incompetent hospital trust being an incompetent trust. There is very little thirst for the truth or fairness in the NHS, and they will pursue whatever narrative suits them best.
I have recently been engaged in legal proceedings with a hospital trust due to my work. Obviously I can't go into details but their conduct was outrageous, and continues to be so. They didn't submit evidence, denied other evidence existed (even when it was in front of them) and didn't even respond when threatened with contempt of court. Had I not have been so closely involved in the case, I wouldn't have believed their behaviour. The outcome was not favourable for them. Despite this, and instead of using it as a chance to reflect and learn lessons, they have instead plastered all over social media about how wonderful a certain member of staff was (who partially caused the action to have to be taken) and have presented them with an award for their participation in the case. In the background, they have submitted a 14 page report against someone who was congratulated by the Judge due to their exceptional evidence and they are now facing an investigation. If I wasn't witness to this myself, I'd think it was made up but sadly it's not. It doesn't matter what you present to them, they simply act as if they can't read - it's bizarre. A whole court judgment which proves they were wrong (it wasn't even finely balanced, it was very clear) and they are paying it no mind at all, whilst viciously pursuing someone who the Judge was thoroughly impressed with.
It appears that there's a penchant for NHS legal batshittery but they seem to get away with it. Even when they don't, they don't seem to care - water off a ducks' back and on to the next one.