Hospital activities dominates the sector
Preliminary results of the 2013 Annual Survey of Philippine Business and Industry covered a total of 994 Human Health and Social Work Activities establishments with a total employment (TE) of 20 and over in the formal sector of the economy.
By industry group, Hospital activities registered the highest number of 656 establishments. This accounted for 66.0 percent of the total number of establishments for the sector. Medical and dental practice activities followed next with 230 establishments (23.1%) while other social work activities without accommodation, n.e.c. ranked third with 53 establishments (5.3%). On the other hand, establishments engaged in residential nursing facilities recorded the least number of establishments with 3 or 0.3 percent of the total. Figure 1 shows the distribution of establishments by industry group.
Majority of establishments are in the National Capital Region (NCR)
By geographic location, NCR had the largest number of establishments with 305 or 30.7 percent. CALABARZON and Central Luzon placed second and third with 152 or 15.3 percent and 87 or 8.8 percent, respectively. (See Table 2)
Hospital activities employ the most number of workers
The sector employed a total of 119,498 workers. Almost all or 98.1 percent (117,234) of the total were paid employees and the rest were working owners or unpaid workers.
Figure 2 shows that hospital activities, having the largest number of establishments, had the most number of employees with 102,720 or 86.0 percent followed by medical and dental practice activities with 10,498 or 8.8 percent of the total employment. On the other hand, residential nursing care facilities registered 135 employees or 0.1 percent.
On the regional level, NCR registered the largest number of workers with 42,289 or 35.4 percent of the total. CALABARZON followed with 18,114 workers or 15.2 percent. ARMM posted the least number of workers with only 252 or 0.2 percent of the total.
Other human health activities industry pays the highest average annual compensation
Total compensation paid by Human Health and Social Works Activities establishments amounted to PHP24.3 billion. Average annual compensation was estimated at PHP206.9 per employee. Other human health activities paid the highest annual average compensation of PHP308.9 per employee while residential nursing care facilities paid the lowest at an average of P101.5 per employee.
At the regional level, NCR employees received the highest average annual compensation of PHP287.0 thousand followed by CAR with PHP235.7 thousand and Central Visayas with PHP210.3 thousand. Distribution of average annual compensation per employee by industry group is shown in Figure 3.
Hospital activities generate the biggest share in income and expense
Total income realized by the sector reached to PHP110.8 billion. Hospital activities had the largest share in income with PHP92.4 billion or 83.4 percent of the total. Medical and dental practice activities came next with PHP8.4 billion 7.5 percent. On the other hand, residential nursing care facilities shared the least with PHP11.2 million or 0.01 percent.
Total expense amounted to PHP93.4 billion. Being the major income contributor, hospital activities also had the largest proportion in expense with PHP79.4 billion (85.1%) and medical and dental practice activities with PHP7.1 billion (7.6%). Residential nursing care incurred the lowest expense of PHP17.2 million (0.02%). Figure 4 shows the income generated and expense incurred by the Human health and Social Work Activities establishments by industry group.
Among the regions, NCR generated the highest income amounting to PHP51.7 billion or 46.7 percent. CALABARZON came next with PHP14.2 billion or 12.8 percent while Central Visayas ranked third with PHP10.7 billion or 9.6 percent.
Income per expense amounts to 1.2
The ratio of total income to expense was recorded at 1.2, which means that for every peso spent PHP1.2 was realized in terms of income.
Among industries, other human health activities recorded the highest income per expense ratio of 1.8, indicating PHP1.8 income per PHP1 expense. Two industries, social work activities without accommodation for the elderly and disabled and residential nursing care facilities recorded income per expense ratio of 1.0 and 0.7, respectively, lower that recorded for the national.
Value added amounts to PHP52.8 billion
Value added was estimated at PHP52.8 billion. Among industries, hospital activities contributed the biggest share to total value added amounting for PHP44.7 billion or 84.8 percent. Medical and dental practice activities followed with only PHP3.9 billion or a share of 7.5 percent. On the other hand, residential nursing facilities generated the least with PHP3.7 million or 0.01 percent.
Hospital activities report the highest labor productivity
Labor productivity, defined as the ratio of value added to total employment, was estimated at PHP441.6 thousand for the sector. The highest labor productivity was recorded by hospital activities with PHP1.151 million. Residential care activities for the elderly and disabled and other residential care activities, n.e.c. placed in second with PHP724.7 thousand. Other social work activities without accommodation, n.e.c. came next with PHP723.4 thousand in labor productivity. Figure 5 shows the value added per worker by industry group.
Gross additions to fixed assets reaches to PHP7.5 billion
Gross additions to fixed assets totaled PHP7.5 billion. Hospital activities recorded the highest gross additions to fixed assets with PHP6.8 billion (91.6%). Social work activities without accommodation for the elderly and disabled contributed the lowest with PHP1.3 million or 0.02 percent to total gross addition to fixed assets.
Across regions, NCR posted the highest additions to fixed assets with PHP2.9 billion or 38.6 percent. Central Visayas followed with PHP1.7 billion or 23.4 percent. Central Luzon ranked third with PHP545.3 million or 7.3 percent.
Total change in inventories amounts to PHP211.2 million
Change in inventories, defined as the value of ending inventory less the beginning, amounted to PHP211.2 million. Among industries, hospital activities recorded the highest with PHP243.3 million followed by other social work activities without accommodation, n.e.c. with PHP6.0 million and other human health activities with PHP2.7 million.
At the regional level, NCR registered the highest change in inventories with PHP93.7 million or 44.4 percent. Western Visayas followed next with PHP80.8 million or 38.3 percent. Central Luzon ranked third with PHP50.1 million or 23.7 percent of the total.
No receipts from Subsidies and Sales from E-Commerce in 2013
Establishments engaged in Human Health and Social Work Activities did not receive any subsidies from the government for the year 2013. At the same time, none of the establishments reported sales from e-commerce activities during the reference year.
This Special Release presents the preliminary results of the 2013 Annual Survey of Philippine Business and Industry (ASPBI) for the Human Health and Social Work Activities sector for establishments with total employment of 20 and over in the formal sector of the economy.
The 2013 ASPBI is a forerunner of the 2010 ASPBI and one of the designated statistical activities of the former National Statistics Office (NSO) now Philippine Statistics Authority (PSA). Data collected from the survey will provide information on the levels, structure, performance and trends of economic activities of the formal sector of the economy for the reference period 2013. It will also serve as benchmark information in the measurement and comparison of national and regional economic growth.
To provide establishment respondents ease of accomplishing the 2013 ASPBI questionnaires, the income and expense account in the Financial Statement of establishment was adopted in the design of sectoral 2013 ASPBI questionnaires. Income and revenue have the same concept in recording financial transaction of establishments while expense is cost incurred on a consumed basis.
Data collection was intensified through the use of web-based or online accomplishment of questionnaire through the PSA website and downloading of e-questionnaire and submission thru e-mail.
The conduct of the ASPBI is governed by authority of the following legislative acts and presidential directives:
- Republic Act 10625 know as the Philippine Statistical Act of 2013 dated September 12, 2013 - (Reorganizing and strengthening of the Philippine Statistical System (PSS), its agencies and instrumentalities). It shall be the policy of the State to effect the necessary and proper changes in the organizational and functional structures of the PSS in order to rationalize and promote efficiency and effectiveness in the delivery of statistical services.
Section 27 of Republic Act No 10625 states that:
"... Respondents of primary data collection activities such as censuses and sample surveys are obliged to give truthful and complete answers to statistical inquiries. The gathering, consolidation and analysis of such data shall likewise be done in the most truthful and credible manner. Any violation of this Act shall result in the imposition of the penalty of one (1) year imprisonment and a fine of One hundred thousand pesos (P100,000.00). In cases where the respondent fails to give truthful and complete answers to such statistical inquiries is a corporation, the above penalty shall be imposed against the responsible officer, director, manager, and/or agent of said corporation. In addition, such erring corporation, enterprise or business concerned, shall be imposed a fine ranging from One hundred thousand pesos (P100,000.00) to Five hundred thousand pesos (P500,000.00)..."
Confidenciality of Information
- Republic Act 10625 (Philippine Statistical Act of 2013)
Section 27 of RA 10625 states that:
"... Any person, including parties within the PSA Board and the PSA, who breach the confidentiality of information, whether by carelessness, improper behavior, behavior with malicious intent, and use of confidential information for profit, are considered guilty of an offense and shall be liable to fines as prescribed by the PSA Board which shall not be less than Five thousend pesos (P5,000.00) nor more than Ten thousand pesos (P10,000,00.00) and/or imprisonment of three (3) months but not exceed one (1) year, subject to the degree of breech of information..."
- Republic Act 6713 (Code of Conduct and Ethical Standards for Public Officials and employees) dated February 20, 1989.
Section 7 of RA 6713 states that:
"... (c) Disclosure and/or misuse of confidential informatiom. Public officials and employees shall not use or divulge confidential or classified information officially known to them by reason of their office and not made available to the public, either: (1) to further their private interest, or give undue advantage of anyone, or (2) to prejudice the public interest..."
Scope and Coverage
The 2013 ASPBI was a nationwide undertaking of establishments confined to the formal sector of the economy and as such excluded the informal sector. The following comprise the formal sector:
- Corporations and partnerships
- Cooperatives and foundations
- Single establishment with employment of 10 or more
- Single proprietorship with branches
Hence, the 2013 ASPBI covered only the following economic units:
- All establishments with total employment (TE) of 10 or more, and;
- All establishments with TE of less than 10, except those establishments with Legal Organization = 1 (single proprietorship) and Economic Organization = 1 (single establishment), that are engaged in economic activities classified according to the 2009 Philippine Standard Industrial Classification (PSIC).
The initial estimate of the 2013 List of Establishments (LE), the frame used to draw the sample establishments for the 2013 ASPBI, registered a total of 941,000 establishments in operation nationwide in 2013. Out of this number, 72 percent or 678,000 establishments belong to the informal sector and only 28 percent or 263,000 establishments made up the formal sector.
Listed below are the 18 economic sectors within the scope of the 2013 ASPBI classified under the 2009 PSIC.
- Agriculture, Forestry and Fishing (A)
- Mining and Quarrying (B)
- Manufacturing (C)
- Electricity, Gas, Steam, and Air Conditioning Supply (D)
- Water Supply; Sewerage, Waste Management and Remediation Activities (E)
- Construction (F)
- Wholesale and Retail Trade; Repair and Maintenance of Motor Vehicles, Motorcycles (G)
- Transportation and Storage (H)
- Accommodation and Food service activities (I)
- Information and Communication (J)
- Financial and Insurance Activities (K)
- Real Estate Activities (L)
- Professional, Scientific and Technical Activities (M)
- Administrative and Support Service Activities (N)
- Education (P)
- Human Health and Social Activities (Q)
- Arts, Entertainment and Recreation (R)
- Other Service Activities (S)
Unit of Enumeration
The unit of enumeration for the 2013 ASPBI was the establishment. An establishment is defined as an economic unit, which engages, under a single ownership or control, in one or predominantly one kind of activity at a single fixed physical location.
Classification of Establishments
An establishment is categorized by its economic organization (EO), legal organization (LO), industrial classification, employment size and geographic location.
Economic organizations (EO). This refers to the organizational structure or role of the establishment in the organization. The following are the types of economic organization:
- Single establishment (EO=1) is an establishment which has neither branch nor main office. It may have ancillary unit/s, other than main office, located elsewhere.
- Branch only (EO=2) is an establishment which has a separate main office located elsewhere.
- Establishment and Main Office (EO=3) is one where the establishment is located in the same address as the main office and with branch/es elsewhere.
- Main Office (EO=4) is a unit which controls, supervises and directs one or more establishments of an enterprise.
- Ancillary Unit other than Main Office (EO=5) is a unit that operates primarily or exclusively for a related establishment or group of related establishments or its parent establishment and provides services that support those establishments.
Legal Organization (LO). This refers to the legal form of the economic entity provides the legal basis for ownership of the establishment. The following are the types of legal organization:
- Single Proprietorship (LO=1) refers to a business establishment organized, owned, and managed by one person, who alone assumes the risk of the business enterprise. A sole proprietorship must apply for a business name and be registered with the Department of Trade and Industry (DTI).
- Partnership (LO=2) refers to an association of two or more individuals for the conduct of a business enterprise based upon an agreement or contract between or among them to contribute money, property or industry into a common fund with the intention of dividing profits among themselves.
- Government Corporation (LO=3) also called Government-Owned or Controlled Corporation (GOCC) refers to a corporation organized for private aim, benefit or purpose with the government as the major stockholder, regardless of whether they are stock or non-stock corporations.
- Stock Corporation (LO=4) refers to an ordinary business corporation organized by private persons, created and operated for the purpose of making a profit which may be distributed in the form of dividends to stockholders on the basis of their invested capital.
- Non Stock, Non-profit Corporation (LO=5) refers to a business corporation which does not issue stock to its members and are created not to profit but for the public good and welfare. Of this character are most of the religious, social, charitable, educational, literary scientific, civic and political organizations and societies.
- Cooperative (LO=6) refers to an organization composed primarily of small producers and/or consumers who voluntarily join together to form a business enterprise which they themselves own, control and patronize.
- Others (LO=7) refer to an organization not classified in any of the above classification. It includes private associations, foundations, Non-Governmental Organizations, or other forms of legal organizations.
Industrial classification The Industrial Classification of an economic unit is determined by the activity from which it derives its major income or revenue. The 2009 PSIC which was approved for adoption by government agencies and instrumentalities through NSCB Resolution No. 2 Series 2010 was utilized to classify economic units according to their economic activities.
Size (SZ) of the Unit of Enumeration The size of an economic unit is determined by its total employment (TE) as of specific date. Total employment (TE) refers to the total number of persons who work in or for the establishment/enterprise. This includes paid employees, working owners, unpaid workers and all employees who work full-time or part-time including seasonal workers. Included also are persons on short term leave such as those on sick, vacation or annual leaves and on strike.
The following are the size codes and corresponding total employment used in the 2013 ASPBI:
Geographic Classification. Establishments are also classified by geographic area using the Philippine Standard Geographic Code (PSGC) classification. The PSGC contains the latest updates on the official number of regions, provinces, cities, municipalities, and barangays in the Philippines. The latest PSGC as of December 31, 2013.
The 2013 ASPBI was done using stratified systematic sampling with 5-digit PSIC serving as industry strata (or industry domain) and employment size as the second stratification variable.
Non-Certainty Stratum (strata TE of 20-49 and TE of 50-99)
The estimate of the total of a characteristic for the non-certainty employment strata in TE of 20 and over for an industry domain in each region (geographic domain) is
- s = denotes the non-certainty employment strata in TE of 20 and over.
- p = 1,2,...17 regions (geographic domains)
- xspj = value of the jthestablishment in the non-certainty employment strata in TE of 20 and over in for an industry domain in each region.
- j = 1,2,3,..., nspestablishments
- Wspj = weight of the jth establishment in non-certainty employment strata in TE of 20 and over for anindustry domain in each region
- Nsp = total number of establishments in the non-certainty employment strata in TE of 20 and over for an industry domain in each region
- nsp = number of sample establishments in the non-certainty employment strata in TE of 20 and over for an industry domain in each region.
The estimate of the total of a characteristic for the certainty employment stratum in TE of 20 and over in an industry domain in each geographic domain (region) is
- c = denotes the certainty employment stratum in TE of 20 and over
- p = 1,2,..., 17 regions (geographic domains)
- xcpj = value of the jthestablishment in the certainty employment stratum in TE of 20 and over in an industry domain within each region.
- j = 1,2,3,... mcpestablishments
- mcp = number of establishments in the certainty employment stratum in TE of 20 and over in anindustry domain within eachregion.
Total Estimate for TE of 20 and Over
The estimate of the total of a characteristic for the industry domain in each region (geopraphic domain) was obtained by aggregating the estimated for all employment strata (non-certainty and certainty) in the same industry domain,
where dp denotes the industry domains in each region
National level estimate of the the characteristic by industry domain were obtained by aggregating separately the estimates for the particular industry domain from all the regions,
Weight Adjusment Factor for Non-Response
To account for non-response in the non-certainty strata, the adjusment factors, and (n/n') was multipled with the sampling weight (W) of each of the sampling unit. The sampling weight which is defined as N/n was recomputed as
For the non-certainty employment stratum in TE of 20-49 or 50-99, the adjusted weight is
- Nsp = total number of establishments in the non-certainty employment stratum in TE of 20-49 or 50-99 fon anindustry domain within each geographic domain(region)
- n'sp= number of responding establishments in the non-certainty employment stratum in TE of 20-49 or 50-99 for anindustry domain within each geographic domain(region)
Field operations of the 2013 ASPBI were scheduled from September to December 2014.
Total response rate for Human Health and Social Work Activities sector with TE of 20 and over was 89.7 percent (516 out of 575 establishments). This included receipts of "good" questionnaires, partially accomplished questionnaires, reports of closed, moved out or out of scope establishments.
Of the total responses, seven establishment responded online and none accomplished e-questionnaire. Others convert accomplished questionnaires to portable document format (PDF) and submit through e-mail.
CONCEPTS AND DEFINITIONS OF TERMS
Establishment is an economic unit under a single ownership control, i.e., under a single entity, engaged in one or predominantly one kind of economic activity at a single fixed location
Total employment is the number of persons who worked in for the establishment as of November 15, 2013.
Paid employees are all full-time and part-time employees working in or for the establishment and receiving pay, as well as those working away from the establishment paid by and under the control of the establishment. Included are all employees on sick or maternity leave, paid vacation or holiday and on strike. Excluded are directors paid solely for their attendance at meetings, consultants, workers on indefinite leave, working owners who do not receive regular pay, homeworkers and workers receiving pure commissions only.
Unpaid workersincludes salaries and wages, separation/retirement/terminal pay, gratuities, and payments made by the employer in behalf of the employees such as contribution to SSS/GSIS, ECC, PhilHealth, Pag-ibig, etc.
Compensation includes salaries and wages, separation/retirement/terminal pay, gratuities, and payments made by the employer in behalf of the employees such as contribution to SSS/GSIS, ECC, Phil Health, Pag-ibig, etc.
Salaries and wages are payments in cash or in kind to all employees, prior to deductions for employee’s contributions to SSS/GSIS, withholding tax, etc. Included are total basic pay, overtime pay and other benefits.
Income or Revenue includes cash received and receivables for goods/products and by-products sold and services rendered. Valuation is at producer prices (ex-establishment) net of discounts and allowances, including duties and taxes but excluding subsidies.
Cost refers to all expenses excluding compensation incurred during the year whether paid or payable. Valuation should be at purchaser price including taxes and other charges, net of discounts, rebates, returns and allowances. Goods received from and services rendered by other establishment of the same enterprise are valued as though purchased.
Expense refers to cost incured by the establishment during the year whether paid or payable. This is treated on a consumed basis.
Valued added is gross output less intermediate input. Gross output for human health and social work activities is the sum of the total revenue (less interest income, rent income from land, dividend income, royalty income and franchise income), capital expenditures of fixed assets produced on own account and change in inventories. Intermediate input is equal to the sum of the following cost items: materials and supplies purchased; fuels, lubricants, oils and greases purchased; electricity purchased, water purchased; cost of industrial services done by others; cost of non-industrial services done by others; goods purchased for resale; research and development expense; environmental protection expense; royalty fee; franchise fee; payouts and other cost.
Gross addition to tangible fixed assets is equal to capital expenditures less sale of fixed assets, including land.
Change in total inventories is computed as the total of ending inventory less the total beginning inventory.
Inventories refer to the stock of goods owned by and under the control of the establishment as of a fixed date, regardless of where the stocks are located. Valuation is at current replacement cost in purchaser prices. Replacement cost is the cost of an item in terms of its present price rather than its original cost.
Subsidies are all special grants in the form of financial assistance or tax exemption or tax privilege given by the government to aid and develop an industry.
E-Commerce refers to the selling of products or services over electronic systems such as the Internet Protocol-based networks and other computer networks, Electronic Data Interchange (EDI) network, or other on-line system.
Source: Philippine Statistics Authority - National Statistics Office