Crosby Labour councillor Steve McGinnity said the government is preparing to privatise the NHS by the backdoor after seeing a presentation for Sefton councillors on the Conservative-Lib Dem plans.
Councillors were given a presentation on a report compiled by Coaltion Government Health Secretary Andrew Langley.
After hearing the presentation, Manor Ward councillor Steve McGinnity said the plans were "grotesque" and would lead to the privatisation of the NHS.
Cllr McGinnity said: "What we are about to see happen to the NHS really is unprecedented in the service's 62-year history.
"There will be an immediate 45% cut in the NHS's admin. All PCTs are to be abolished by 2013. Individual providers will be brought in and will be expected to recruit and train their own staff and as they are private sector their main aim will be profit and as happened in the 1980s recruitment will fall dramatically.
"All hospitals will be expected to convert to Foundation Status by 2013 and there will be no exceptions.
"There wil be across the board cuts in staffing levels of 30%.
"Capping of profits is to go, which means that hospitals will be allowed to perform surgery and provide health provision to people from outside the UK which means that they will be able to leapfrog the waiting list producing a situation for British citizens whereby they either pay for health provision or wait.
"This will produce an incredibly volatile market in health provision whereby companies from outside the UK will be able to compete on price for business.
"Companies from India, France and Germany will be allowed into the UK health market.
"The ultimate result of this is the downsizing and privatisation of the NHS."
Cllr McGinnity said he was horrified at the prospect of the Conservative-Lib Dem government's plans for the NHS.
He added: "Over two years we are going to see a major obscene deconstruction of the NHS. Waiting lists will return to how they were under the previous Conservative government, but not only that they will be worse.
"Because our health service is being turned into a business, patients will be seen as nothing more than commodities, or what's worse, liabilities as older people will struggle to get the care they need as they are more expensive to deal with."
Sefton Central MP Bill Esterson who has also raised concerns over the plans said people need to campaign to stop the government carrying through its plans which will destroy the health service.
Bill said: "These plans really do horrify me. The Conservative-Lib Dem government is doing nothing more than destroying our health service.
"We have warned all along that the Conservatives would launch an attack on the NHS and now with the Lib Dems, they are doing just that.
"This ConDem government is betraying the NHS and it is betraying the British people by fundamentally dismantling what is a health service which is the envy the world over.
"People need to oppose this every step of the way."