The chief executive of one of the country’s biggest health insurers says the hospital system must deal with soaring costs even if it means fewer beds, as she warns against private equity being allowed to buy into healthcare.

HCF chief executive Sheena Jack made the comments as she revealed her retirement from the not-for-profit fund in July after eight years in the top job. In a rare interview, Jack defended the profits made by health insurers and said she had grave concerns about the healthcare system.