A hospital campaigner has urged Cherwell District Council to build a new community hospital in Bicester and rent it to the local primary care trust.

Local councillor Les Sibley has vowed to go on a fact-finding mission to Worcestershire, where Wychavon District Council is believed to have become the first local authority to build its own hospital.

The council has spent £6.7m on a 26-bed community hospital in Pershore to lease to the local primary care trust, which is in financial difficulties.

Now Mr Sibley has promised to do all he can to persuade Cherwell District Council to back a similar scheme in Bicester.

He said he would put forward motions at the district and town councils as soon as possible, seeking support for the idea.

Pershore's new hospital is being funded from the proceeds of the sale of council housing to a housing association.

Wychavon District Council said the development would mean a higher rate of return on surplus money than it could get from bonds and that the PCT would get a more affordable deal than if the hospital were built with private finance.

Mr Sibley said: "It sounds like a very good idea. I think we are almost at that stage already, because we have got the land that puts us in a better position than Wychavon. Now we just need a building."

Cherwell council's leader, Barry Wood, said: "I agree the council needs to take the Pershore example and see if it has any potential for us. I should, however, warn against too much excitement.

"There are two ingredients here firstly that the health service wants to hire or lease a hospital from us. Right now they seem to be saying that they do not want a community hospital in Bicester, and that, worse, they could be thinking of closing the existing one.

"Secondly the council would have to be sure the return on its investment was at least as good as what it gets from putting the money in the bank."

North East Oxfordshire PCT spokesman Heather Barnett said it would consider all the options available.