VHI chairman Bernard Collins is to step down from the post in early September. He has been chairman of the State-owned health insurer for the past nine years.

In a statement yesterday, Mr Collins said he believed the time was right to pass over the helm to someone new.

Earlier this week the company announced that former Bupa Ireland executive John O’Dwyer was to be the new chief executive of the company.

Mr Collins said last night: “Over the past 10 years the business of Vhi Healthcare has had highs and lows, but has emerged as a much stronger organisation as a result.

“I have every confidence that Vhi Healthcare will continue to do very well so long as we are provided with a stable,

consistent and equitable legislative and regulatory base so that we can manage the ever increasing cost drivers facing healthcare,” Mr Collins added.

The Vhi chief said: “It is only against this background can we continue to facilitate quality healthcare at affordable costs for our customers.”

When asked if Minister for Health James Reilly had sought the resignation of Mr Collins, a spokesman for Dr Reilly last night said he had “no comment” to make.