STAFFORD MP Jeremy Lefroy says the town’s hospital should be taken over by University Hospital of North Staffordshire immediately.
Mr Lefroy has put forward an alternative proposal to the trust special administrator which he says would save £34.2 million a year.
It includes UHNS taking over the running by the end of the year at the latest.
He said there was general agreement that Mid Staffordshire NHS Foundation Trust should be dissolved.
In its place he said a new trust and board should be set up which would share executive management and back office functions saving £9 million.
He said a further £1.6 million could be saved by moving support services.
The TSA has calculated savings of £8.6 million by cutting services which Mr Lefroy said should be retained.
Other potential savings include £6.2 million savings is projected by the TSA from staff and non staff services because of closer networking, a figure Mr Lefroy agrees with.
A further £4 million savings has been outlined by reducing surplus space at Stafford and Cannock Hospitals.
The town MP said Mid Staffs would be the first foundation trust to be dissolved, marking a significant change in the structure of the NHS.
Mr Lefroy said all services should continue to be delivered on the current sites with cost cutting starting immediately.
“My alternative proposal fully accepts the TSA's basic premise that MSFT should be dissolved and Stafford and Cannock Hospitals be merged with other NHS Trusts,” he said.
He called for a five-year transition period, longer than the three years proposed by the TSA.
“Services such as full consultant-led paediatrics and maternity, where provision as close as possible is especially important for patients and their loved ones, are clearly desired by the local community and contributes to reducing health inequalities.
These should be retained at Stafford for the whole transitional period of 4-5 years.
“This would also have the advantage of allowing the use of these services to rise to its normal long-term level, which has been adversely affected by the problems arising from the poor quality of care set out in the Healthcare Commission and Francis reports.”
Consultation on the TSA’s draft proposals ended on Tuesday and the administrator’s report will go to Monitor before being put before the secretary of state for health Jeremy Hunt to make a decision by December 31.