Plans to replace Bicester’s Community Hospital have been delayed again – this time because of a legal wrangle.

Oxfordshire PCT was due to give more details to developers to come up with designs for the future of the hospital but, after a number of legal challenges against local authorities by companies who failed to win public sector contracts, the PCT confirmed the project had been put on ice while it sought legal advice.

However, the health authority denies the project has been shelved.

Last January Oxfordshire PCT threw down the gauntlet asking developers to come up with a design for the town’s community hospital.

Instead of developers being given a site and a list of specifications of what was required, the PCT simply asked firms to come up with proposals.

Bicester was promised a 30-bed hospital in 1998, but the PCT proposed a primary care centre instead – with 12 beds dispersed around local nursing homes.

Since then campaigners have been fighting for a hospital with its own in-patient beds.

Dr Michael Curry, chairman of the community participation group that was set up to ensure local input into the project, said: “The bidding process the PCT opted for was very loose and experimental. I think it was unsafe.

“It’s likely the current process will be dropped, but the decision has not been taken yet.”

It is understood a decision whether to press ahead with the current tendering process will be made by the PCT at a meeting later this month.

Meanwhile, campaigners have criticised the PCT and called for it to reconsider the offer made by Cherwell District Council – to fund and build a 12-bed hospital on donated land off Oxford and Middleton Stoney roads, known as the south west option.

Hospital campaigner and Labour Parliamentry candidate Les Sibley said the situation had become farcical.

He said: “If the PCT is going to scrap this exercise, perhaps now is the time for them to take a second look at Cherwell District Council’s offer. It’s probably the best option for Bicester.”

Tony Baldry, who is campaigning to retain his seat as the town’s MP, said: “I’m concerned that the longer this project drags out, inevitably the more expensive it’s going to become. If there should be any shadow of suggestion somewhere down the line that this is a project is no longer affordable, there will be something of a riot in Bicester.”

PCT project manager Tony Burrage said: “This legal advice is taking longer than originally scheduled, as there have been a number of challenges nationally to public sector procurements.

“No, the hospital scheme has not been postponed. The original tender always expected bidders to provide a facilities/building solution.

“It remains NHS Oxfordshire’s firm commitment to re-provide health facilities for Bicester and the local district.”

Cherwell District Council confirmed its bid was still on the table.