A BID by a council to build a hospital for Bicester has been rejected – throwing into doubt the current community hospital’s future.

Earlier this year Cherwell District Council emerged as a potential saviour of the hospital after it submitted a proposal to Oxfordshire PCT to build at least a 12-bed hospital on land known as the south west option, between Middleton Stoney and Oxford Road, and lease it back to the health authority.

Seven acres of the site – the rest is earmarked for housing – has been signed over to the council and it has outline planning permission for a health village. But the PCT has apparently rejected the proposal, angering hospital campaigners who believe the site is the best option for the town.

The health authority wants to build a build a primary care centre – that is a hospital without in-patient beds – and beds would be rented in nursing homes throughout the town.

Local councillor Les Sibley, who is spearheading the “Save Our Community Hospital Campaign”, said: “It would be a devastating blow to the campaign because this will be a lost opportunity.

“I think if they stick to the original option of a primary care centre, this could be the end of Bicester Community Hospital. And we will never be able to get it back.

“It’s all down to money and that is the cheapest option.

“I’m dumb-founded that something handed to them on a plate has been turned down.

“There is going to be a hell of a fighting campaign. People have already offered donations and pledged to help with legal costs.”

Mr Sibley accused the PCT of being short-sighted as the population of Bicester and the surrounding area could grow to 100,000 if proposed housing developments are given the green light.

So far 5,000 people have signed his petition to keep a hospital in Bicester.

The PCT would not confirm if Cherwell had submitted a proposal or if that plan had been rejected.

But an agenda item, due to be discussed by Cherwell councillors on Monday, said the council had “submitted an expression of interest to the PCT” promoting south west Bicester.

It said: “Regrettably, the council was unsuccessful in being invited to the next round of the procurement process.”

It also said the council was waiting for further information from the PCT over why its bid was “unsuitable”.

A spokesman for the PCT said firms whose proposals met the requirements of an advertisement placed in January made it to the shortlist.

Firms would be evaluated before going to the next stage.

She added unsuccessful applicants had been told the reasons why their applications failed.

More than 30 firms contacted the PCT to build a health facility at the site.