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A report from the Commons public accounts committee has said that hundreds of thousands of people die in hospital every year who would rather spend their final days at home.
The MPs also found people who die in hospital are not always afforded the care they deserve, and called for NHS trusts to employ specialist palliative care teams.
Thursday's report recommended that end-of-life services are given a higher priority by primary care trusts (PCTs), to provide people with the right to die "in their place of choice".
MPs highlighted that the poor co-ordination between health and social care services is "generally poor", with the wishes of people approaching death often not known.
The report warned: "Most people express a preference to die at home but 60 per cent die in an acute hospital, even when there is no clinical need for them to be there."
The committee also found a lack of education and training in basic end-of-life care among frontline health workers.
MPs welcomed the additional £286m committed by the Department of Health to end-of-life care but raised concerns that PCTs must not divert the funding to other areas.
Chairman of the committee Edward Leigh stated: "Most people die in hospital, even when there is no medical need for them to be there.
"It is appalling that people dying in hospital are not always being given the end of life care they deserve, including effective pain management and being treated with dignity and respect.
"People approaching the end of life have as much right to quality of life as anyone else."
Charity director for Age Concern and Help the Aged Michelle Leigh said: "The government and the NHS need to stop dragging their feet on ageist practice and ensure good quality care from the cradle to the grave."
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