Senator LUDWIG (Queensland—Minister for Agriculture, Fisheries and Forestry and Minister Assisting on Queensland Floods Recovery) (14:52): I thank Senator Xenophon for his question in relation to private hospitals in South Australia. I understand that Minister Plibersek is aware of this issue and I understand that she has been and is corresponding in respect of it. As to the second question, the Commonwealth does not regulate private hospital charges. Honourable senators interjecting— The PRESIDENT: Order! Wait a minute, Senator Ludwig. Senator Xenophon is entitled to hear the answer to his question and not have people immediately to his left and right debating other matters across the chamber. It is completely disorderly. Senator Ludwig, continue. Senator LUDWIG: The Commonwealth does not regulate private hospital charges; the Commonwealth does regulate private health insurance benefits. Private hospitals are free to set their own charges. Private health insurers and private hospitals commonly contract for the provision of services and accommodation and these are commercial decisions negotiated between the parties. The government does not have any regulatory power to force the parties to agree to particular levels of benefits payable. Hospital case-mix protocol data shows that about 98.1 per cent of private hospital episodes and about 92 per cent of day surgery episodes were contracted, so the vast majority of these are contracted directly. With regard to South Australia, it can be noted that the data released by the Private Health Insurance Administrative Council indicated that out-of-pocket costs are lower in South Australia for a hospital episode than in any other state. At June 2012, the percentage of services with no medical gap is higher in South Australia—at about 93.2 per cent—compared with other states and territories which range variously from 77 per cent right up to the 90 per cent mark. Additionally, South Australia has the lowest average gap payment across all services. In South Australia the average is about $5.33, while in other states it ranges from as high as $67— (Time expired)