Greater Manchester will begin taking control of its health budget from April after a devolution agreement was signed by the Chancellor George Osborne.
The region's 10 councils and health groups will take over £6bn allocated for health and social care, with full powers being devolved a year later.
Mr Osborne signed the memorandum of understanding, dubbed Devo Manc, for "better, more joined-up health care".
Labour MP Barbara Keeley said: "We're being handed over a funding crisis."
From 1 April, the region will start making its own decisions which will "provide the foundations" for a Greater Manchester health and social care strategy.
Manchester City Council said this, along with business and investment proposals, would also give a "transitional plan" for full devolution by April 2016.
'No NHS reorganisation'Mr Osborne said: "We have a landmark agreement to bring the local NHS and social care much more closely together.
"I am excited about all this because not only does it mean the people of Greater Manchester having more control over the decisions that affect their lives, I believe it will also lead to better, much more joined-up health care.
"It's also a historic day for Greater Manchester. They are leading the country in this important change."
The agreement "does not require any reorganisation of the NHS or its principles", the city council said.
Under the plan- Greater Manchester takes responsibility for adult, primary and social care
- The region will also control mental health and community services and public health
- It will focus on preventative work in the community such as treating heart conditions by community specialists in a bid to ease pressure on hospitals
- The 10 councils, 12 clinical commissioning groups, 15 NHS providers and NHS England will control the budget and deliver services
- The group will also build strategies around governance, regulation, finances and health education to run the devolved health service
Ms Keeley, MP for Worsley and Eccles South, said: "The problem with Osborne's offer is that it is on existing budgets.
"A&E has just been through its biggest crisis for many many years, so let's be realistic about it.
"There are big gaps in social care, our hospitals are in deficit [and] that's no way to do a proper job of integrating care, which is Labour's policy - to integrate health and social care at the local level."
The agreement is part of the government's northern powerhouse plan to close the economic gap between north and south by investing in regions.
The plan would see local leaders, and ultimately Greater Manchester's new directly elected mayor, control how budgets are allocated.
'Landmark agreement'Deputy leader of Greater Manchester Combined Authority Sir Richard Leese said: "The first big change is to make sure that a lot of people aren't entering into needing healthcare that don't need to do so."
Sir Richard, who is also the leader of Labour-run Manchester City Council, said "people are spending too long in hospital" so "there will proper care packages available" when they return home.
The plan aims to ease the pressure on hospitals in the long-term.
Ann Barnes, chief executive of Stockport NHS Foundation Trust, said: "It is not about increasing power, but about increasing the health and prosperity of local people.
"We will have greater opportunities to respond swiftly and effectively to the needs of residents and really transform services for them. They will have a powerful voice in a powerful partnership."
NHS England chief executive Simon Stevens described the memorandum of understanding as a "landmark agreement".
"[It] charts a path to the greatest integration and devolution of care funding since the creation of the NHS in 1948," he said.
"Greater Manchester now has a unique opportunity for innovation and improvement in health and wellbeing. The eyes of the country will now be on what this new partnership can deliver, and today the work begins."
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