An application for government money to replace Horton General Hospital in Banbury is turned down.
Oxford University Hospitals NHS Foundation Trust wants to transform Horton General due to its "age and condition"A bid of up to £370m to redevelop a hospital has been rejected.
The Department for Health said there would be further future investment to upgrade NHS facilities, with detail agreed "periodically". Its preferred option included increasing the emergency department's capacity from 16 to 50, new maternity facilities and improvements to its outpatient department.
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