The soon-to-be 41-year-old, who won a world super-G silver in 1996 and a world downhill bronze in 2007, landed awkwardly after clipping a gate near the end of what was his final Olympic race.
He became the oldest male skier, at the age of 39 years and nine months, to record a World Cup podium finish when he placed third in a Super G at Val Gardena in December 2008.
Initial reports suggested Jaerbyn had been airlifted off the mountain by a helicopter as it was feared he had fallen unconscious.
However, team officials later explained that he was conscious and it was decided to slide him down on a stretcher instead.
“He has now been taken to hospital in an ambulance,” team spokeswoman Camilla Sandy told AFP.
“For now all we know is that he is conscious and has some injuries on his face. But that is all we know.”
Swedish ski ace Anja Pärson also fell victim to a spectacular crash in the women’s downhill, after landing awkwardly from a huge jump near the end of the race as she sped towards a silver medal.