It emerged this week that Dr Robert Smith had applied for permission to carry out the controversial procedure at Abbey King's Park Hospital in Stirling.
The surgeon was banned from performing similar operations at Falkirk Royal Infirmary after it was discovered that he had amputated healthy limbs from two private patients there.
The two men suffered from body dysmorphic disorder (BDD), which makes patients want their limbs removed.
The hospital has now rejected Dr Smith's application for permission to amputate the leg of American Gregg Furth.
Mr Hemming told BBC Scotland: "Ultimately our decisions are straight business decisions. If people supported it we may well have done it, but we haven't reached that conclusion.
"We wanted to take a little time to consider before we took a decision, but the issue has attracted so much public interest this week that it has become a major distraction to management time.
"I would like to see a detailed piece of research so that people in this country can have the opportunity to consider more carefully, because for the vast majority it is still an issue that simply can't be understood."
The patient, Greg Firth, attacked the decision and called for more research into the issue.
"For some individuals surgery is the only solution," he said.
"People want research on this, they need to look closely at the few people that voluntarily want to have these amputations and see what's going on.
"Also look at the individuals who have thrown themselves under a train, people who have died or endangered their lives in the attempt to get this surgery.
'Great hopes'
"Let's talk about the hypocrisy of that.
"This wasn't about me having this surgery, it was about the syndrome and having that open and available for individuals who suffer from the syndrome."
Mr Furth said he had had "great hopes" the operation would be performed in Scotland.
"Scotland did go ahead and was progressive and tried a few surgeries that have been highly successful.
"Maybe in the future, if more research is there, they will consider it again - but perhaps it will be considered in another country."
Mr Furth said he suffered from a little known disorder called apotemnophilia and planned to write a book with Dr Smith about the condition.
He has felt his right leg was not part of his body since he was a child.
He said it was neither a sexual fetish, as some people believed, nor a mental illness.
This is the second time that he has failed in an attempt to have the operation in Scotland.