Sussex MPs from across the political divide fought in vain against plans for foundation hospitals.
Brighton Kemp Town MP Dr Des Turner joined 64 of his colleagues on the Labour backbenches to back a rebel amendment against Tony Blair.
He argued the Prime Minister was effectively trying to privatise the NHS and his proposals risked creating a two-tier system.
Dr Turner also voiced concerns about the criteria used to award the special status, which gives greater freedom from Whitehall control.
The revolt, also backed by Lewes Liberal Democrat Norman Baker, was crushed by 297 votes to 117.
Dr Turner and Mr Baker were then joined by Conservative MPs in trying to defeat the second reading of the the Health and Social Care (Community Health and Standards) Bill, which sets up foundation hospitals.
However, it was given a second reading by 304 votes to 230 after a successful operation by Labour whips.
Bexhill and Battle's Gregory Barker, Worthing West's Peter Bottomley, Arundel and South Downs' Howard Flight, Wealden's Charles Hendry, East Worthing and Shoreham's Tim Loughton, Chichester's Andrew Tyrie and Horsham's Francis Maude all opposed the Bill.
Mr Maude said he supported the principle of foundation hospitals, which already exist in other European countries. But he said the Government's proposals would leave hospitals "beset by red tape and interference".
The only Sussex MPs to support the Bill were Labour. Hove MP and Government whip Ivor Caplin, Crawley's Laura Moffatt and Brighton Pavilion's David Lepper supported local people being given a say in how hospitals were run.
Mid Sussex's Tory MP Nicholas Soames and Eastbourne's Tory MP Nigel Waterson did not vote.
Bognor and Regis Tory Nick Gibb deliberately abstained but blasted his party leaders for ordering MPs to vote against the Government.
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