Patients should be given power via locally elected health boards, the Liberal Democrats have said.
Health spokesman Norman Lamb published his "vision paper", setting out plans for a local health service "freed from Whitehall".
The paper, which will be studied by the party's health policy working group, favours the creation of local health boards for decision-making.
It also proposes a "local health contribution" - a tax to pay for local health services which would be offset by cuts in national income tax.
The Liberal Democrats also want to create a "patient's contract" - a declaration of entitlements for everyone, regardless of where they live.
Furthermore, the party pledged to explore the introduction of more direct payments and personal budgets.
Mr Lamb said: "The Liberal Democrats are committed to an NHS which delivers high quality health services to all, irrespective of income.
"As Derek Wanless recently said, this can only be achieved by getting better value for money, but it is crucial to recognise that not every area has the same priorities.
"In today's highly centralised NHS there is a real 'democratic deficit', with too many decisions made in Whitehall.
"Protests against hospital closures and cuts to services, up and down the country, show that local people do not feel their voices are being heard. Liberal Democrats think the status quo is unacceptable. The key is creating real accountability to local communities, where they have the power to make decisions on how money is spent on their NHS."
