Audit Reveals Over £4m Spent on Mental Health Research Without Clear Patient Benefit
A health board has spent more than £4 million on mental health research without demonstrating any direct benefit to its patients, according to an internal audit.
Calls for an external investigation have emerged following a report commissioned by Betsi Cadwaladr University Health Board, which found that its mental health department had funded a Bangor University research centre since 2012.
The report revealed that there had been no formal review of the 14-year agreement and that costs had increased over time.
The health board stated there was "no suggestion of improper conduct".
A separate investigation commissioned by Bangor University also found no evidence of fraud or misconduct.
Background of the Agreement and Funding
In 2012, a five-year agreement was established between the health board and Bangor University to create the Centre for Mental Health and Society (CfMHaS).
An internal report to Betsi, dated April 2026 and reviewed by Newyddion S4C, indicated that the health board had not reviewed the agreement after the initial five years and had paid £4,292,733 to the university by September 2025.
The advisory review concluded that the health board had not demonstrated "value for money" or "a direct benefit to the north Wales population".
"It is unclear what services the health board are receiving and paying for, and how beneficial it is to the population of north Wales," the report stated.
The report also identified several instances where there was no evidence that the health board's financial instructions had been followed.
The report was commissioned following inquiries by David Graves, to whom Betsi had previously issued an apology regarding the treatment his mother received.
Concerns Over Financial Management and Governance
The report noted that small payments were authorised when larger, annual payments should have been made, which would have required more rigorous approval and scrutiny.
The number of health board-funded posts at the research centre increased from two to four without clear justification.
Some Betsi staff who collaborated with the research centre had not declared conflicts of interest, raising concerns about potential conflicts.
David Graves, who received a payment and apology from the health board in 2023 after a decade-long dispute over his mother's mental health treatment, described the funding of the research centre as "a mess."
"We reported this three years ago. The most worrying thing is the number of areas in which the auditor isn't able to give assurances.
This is money bleeding out of the NHS, it's haemorrhaging funds and has been for 14 years."
Partnerships between health boards and higher education institutions are regarded as important for developing expertise and attracting or retaining staff.
Guidance on such partnerships, known as the Follett Principles, stresses the need for collaboration to ensure accountability.
Bangor University Investigation and Research Output
In June 2025, CfMHaS was the subject of a separate internal investigation by Bangor University following allegations of fraud.
A redacted version of the report concluded there was no evidence of misconduct or fraud by the research centre or the university.
The Bangor University report noted a further letter of agreement in 2017 between the university and the health board, which was updated annually until 2022.
Over 100 academic papers and publications by CfMHaS indicated a "solid" research output, the report stated.
It added that it was the health board's responsibility to determine whether funding the university in this manner was appropriate.
Responses from Health Board and Research Centre
Health board chief executive Carol Shillabeer said:
"There is no suggestion of improper conduct"
Professor Rob Poole, co-director of CfMHaS since 2012 and honorary clinical psychiatrist at Betsi under the agreement until his retirement in October 2025, stated he was unaware of the Betsi review but considered its findings "grossly inaccurate."
"All of my extensive research is of direct benefit to the population of Wales, including the externally funded work in south Asia which we are now replicating in Wales."
Poole also said he did not recognise the £4 million figure cited in the Betsi report and noted that CfMHaS generated income with new staff funded from other sources.
According to Betsi's internal report, proposed improvements to the current arrangements have been suggested but do not sufficiently address all concerns or consider alternative partnerships, the auditors noted.
Calls for External Investigation
Geoff Ryall-Harvey of health watchdog Llais stated that the issue should be handled by an external body.
"The [Betsi] report doesn't assign blame to individuals, but it does speak of serious financial mismanagement," he said.
"So nobody who was involved with that financial mismanagement should be involved in the solutions.
There needs to be an external investigation. I think the time for internal action has gone."
The health board's internal report will be reviewed by its audit committee.
Chief executive Carol Shillabeer commented on the commissioning of work at CfMHaS:
"It is important to note that there is no suggestion of improper conduct."
She added that the review was requested to ensure appropriate governance arrangements were in place, "as is good practice."
"In recent years the health board has adopted an increasingly robust approach to commissioning arrangements, which we are determined to strengthen further," Shillabeer said.
A Bangor University spokesperson said CfMHaS acknowledged "the importance of robust and transparent governance."
They noted that the research centre did not directly participate in the internal Betsi review process.
"The centre remains committed to working constructively with the health board as they continue to conduct further assurance activities," the spokesperson said.
Welsh Government Involvement
Due to concerns about the health board's wider performance, the Welsh government announced this week it would take a more direct role in overseeing Betsi.
Responding to Betsi's internal report into CfMHaS, a Welsh government spokesperson said:
"Acting on the findings of this internal audit is a matter for the health board.
In doing so we expect to see improvements in governance arrangements for this funding."
