The lie was that we save that much by leaving the EU, the fact that our health service was underfunded and has had budget increases in line with inflation and population growth doesn't change that it was a lie - we could've (and would have) increased NHS spending regardless of the Brexit vote.
Because the net contribution to the EU was (significantly!) less than £350M.
It wasn't a suggestion to spend more money on the NHS. It was a suggestion to spend the money they claimed we gave the EU every week.
So it was actually a lie on a bus.
The figure was closer to £250M (after the rebate), but when they were given the amicable opportunity to restate the original claim around the correct figure, they doubled down on the £350M lie.