Doctors in Oxford have persuaded the British Medical Association to fund a campaign opposing the use of private money to build new hospitals.

At the BMA's annual meeting yesterday, the Oxford Division won a motion to vigorously oppose the Government's Private Finance Initiative.

The vote was taken less than 24 hours after it was announced a £60m cancer unit will be built in Oxford. The unit, at the Churchill Hospital, in Headington, will be funded by PFI money. The announcement was welcomed by the chief executive of Oxford Radcliffe Hospitals NHS Trust as good news for Oxford patients.

At the BMA meeting, doctors and hospital consultants also agreed to fund initiatives informing people about the long-term implications of PFI, and to commission a financial and performance study of current PFI schemes.

PFI schemes have attracted controversy because they invite private businesses to invest in hospital developments. Investors can become landlords of hospital developments for 30 years. NHS managers will be able to take over the buildings, having repaid the investors over a 30-year period.

Many people in Oxfordshire, including medical staff and union members, have opposed PFI because they say the health service would have to put investors before patients.

PFI is due to be used to fund £255m of new health projects in Oxford.

The Nuffield Orthopaedic Centre, in Headington, is building £35m buildings for research and treatment, with PFI funding.

PFI is providing £220m for hospital units at Oxford's John Radcliffe Hospital and Churchill Hospital.

Oxford City Primary Care Trust has also indicated that PFI could be used to improve GP practices across the city.

North East Oxfordshire Primary Care Trust could use private money to fund the proposed Bicester Community Hospital.