Mr Milburn said the blockade was causing serious problems for NHS staff and patients.
But nurses were disappointed Mr Milburn did not make a specific pledge on pay.
Mr Milburn promised that the measures would be backed up by new specialist staff.
Milburn said he would bring forward legislation as soon as the government was able.
Milburn noted that genetic research helps diagnose patients early and increases the use of preventive medicine.
Mr Milburn said Labour wanted to hand over control and budgets to front-line staff.
Mr Milburn and Mr Blair have described their plans for spending and reform in messianic terms.
Mr Milburn's job is to ensure that, in his third term, he will have it.
However, Mr Milburn's proposals are an over-hyped re-announcement of existing policy, and should be treated sceptically.
Mr Milburn said this was because heart services in the UK had suffered from years of neglect.
Mr Milburn also promised improvements to childcare provision for nurses and staff treatment contributing to hospital ratings.
As health secretary, Alan Milburn consistently rejected calls from the BMA to reopen talks on the contract.
Paul Miller, chairman of the British Medical Association's Consultants Committee, was also unimpressed by Mr Milburn's claims.
Instead, the health department goes to Alan Milburn, formerly the Treasury minister in charge of controlling public spending.
It said it intended to pursue these points with Health Secretary Alan Milburn, the medical professions and relevant organisations.
At least Mr Milburn seems less reticent than his predecessors in acknowledging that hard choices about treatments are inevitable.
Mr Milburn said the government was launching a "national crusade" against heart disease.
Mr Milburn said that Labour would be sticking to the waiting list promises it made in the NHS plan.
Mr Milburn identified this "qualifications inflation" as one of the factors that had increased the social exclusivity of professions.
Mr Milburn learned for a second time that the prime minister's support is inadequate protection against the chancellor's enmity.
Shadow health secretary Dr Liam Fox said the blame lay with Mr Milburn.
However Beverley Malone, general secretary of the RCN, said she was pleased that Mr Milburn had clearly listened to nurses.
Witness last year's unprecedented decision by Frank Dobson, Mr Milburn's predecessor, to restrict the use of the anti-impotence drug Viagra.
Mr Milburn, who was one of Mr Blair's key allies while in office, praised the prime minister's talk of boldness.
BBC: NEWS | UK | Politics | Follow Thatcher example, Blair told
Since succeeding Frank Dobson last October, Mr Milburn has sensibly made tackling the country's most damaging diseases a top priority.
But Mr Milburn did not focus purely on the inquiry's aims and said other pressing measures would be acted on immediately.
Health Secretary Alan Milburn will outline the government's plans to improve maternity care in a speech to the conference on Wednesday.
Bristol was described as a "system failure", both in the inquiry report and by Health Secretary Alan Milburn on the day of its release.
Mr Milburn said the Government will publish a league table showing the best and worst areas in the country from next year.
Mr Scott told MPs he was concerned about issues raised by the Shipman case and had written to health secretary Alan Milburn.
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