Jules,
I had a similar problem to yours. a hernia the size of a melon next to my bellybutton. The doctor ruled out gastric bypass, but did lapband and fixed the hernia at the same time. also had a panniculectomy. although complications, i have absolutely no regrets. I had to lose 100 lbs before he'd do it though. So it can be done. If your doctor says no, than there must be more to it, or you need to find another doctor. Good luck.
Frank