The paper, published by think tank London Councils, suggests the move would integrate services and allow GPs to refer to all public services, 'not just those run by the NHS'.
It says the move could 'offer direct democratic accountability and unified governance'.
In the longer term, there should be a role for elected borough leaders and the mayor of London to scrutinise and influence health care strategy in London, the report says.
Dick Sorabji, corporate director of policy at London Councils, said: 'We want to bring a whole range of public services to bear on improving health in London, and that needs closer integration between local government and local NHS services.'
He added that the move would allow NHS London to achieve the goals of the Darzi plan to provide healthcare 'faster and more effectively'.