Gordon Brown has been urged to scrap plans for a £200 million grant for the British Olympic team, and use the money to help struggling hospitals instead.
Daniel Kawczynski (Con), MP for Shrewsbury and Atcham, said his local hospital was £30 million in debt and may be forced to axe 300 jobs.
Speaking in a Commons debate on the Chancellor's Budget, he said he knew his comments would be "controversial" but health was more important than the Olympics.
In his Budget last week, Mr Brown announced £200 million would be made available over seven years to train and equip athletes. Another £100 million will be sought from the private sector, he said.
The funding is to come on top of the £300 million during the next the next six years that sport was already set to receive from Government and the lottery, to fund preparations for the 2012 Games.
Mr Kawczynski told MPs: "I feel passionately about the Royal Shrewsbury Hospital.
"It is £30 million in debt, with a strong possibility of 300 job cuts there and at neighbouring Telford hospital in the coming year. I find that absolutely petrifying, as do my constituents. There are also threats to services."
He added: "There was nothing about health in the Budget and the Chancellor has let the problem of NHS deficits go to the wall.
"We are all passionate about our country and we all want our Olympic contestants to do extremely well in the Games, but
when the Royal Shrewsbury Hospital is £30 million in debt, my doctors and nurses face the sack and we have a crisis in the National Health Service, the Chancellor should not be giving £200 million to the Olympic team.
"Controversial. But that is how passionately I feel about the Royal Shrewsbury Hospital."
In response, Treasury Minister Des Browne said Mr Kawczynski was asking for extra money for his constituency when his party's policy was not to provide extra funding.
"They are planning cuts in public spending while every other Conservative member, for one reason or another, calls for increases in spending." ..SUPL:
