The Lords have already rejected foundation hospitals
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The leader of the country's biggest trade union has urged Labour MPs to vote against foundation hospitals.
Dave Prentis of Unison said the plan, where top hospitals get greater freedom from central control, could be "deeply damaging" to both Labour and the NHS.
Earlier this month, peers voted against foundation hospitals, and the next vote will be in the Commons on Wednesday.
Mr Prentis said foundation trusts would lead to "increased inequality and competition" in the NHS.
Unison said opinion polls had shown that a majority of the public was opposed to the idea of foundation hospitals.
"The NHS is one of Labour's key electoral assets, and is one of the most crucial issues on which the next election will be fought," Mr Prentis said in a letter to Labour MPs.
'Jeopardising reputation'
"With the additional money now being invested by the government we have an historic opportunity to transform the NHS, reversing the effects of years of Tory underfunding and providing improving services for all.
Dave Prentis: Foundation trusts could undo a lot of good work
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"By pursuing Foundation Trusts, we run the risk of forfeiting this progress and jeopardising our reputation as custodians of the NHS."
It would also mean "opening the door to
the emergence of unacceptable levels of inequality and [damaging] the many positive reforms which the government has already introduced".
Plans to give limited operational and financial freedom to some hospital trusts in England form the main part of the government's flagship Health and Social Care Bill.
James Johnson, chairman of the British Medical Association, wrote to Health Secretary John Reid on Friday to underline doctors' opposition to the proposals.
But Mr Reid said the government would do everything it could to reverse the Lords defeat over the plans.
The bill has already caused major problems for ministers and resulted in one of the largest Commons rebellions last summer, when the government's 164 working majority was cut to just 35.
Tory peers say the government has failed to answer their concerns that the bill will not deliver genuine freedom to hospitals, that non-foundation hospitals will suffer and the whole exercise will be costly and ineffective.