Private medical activities industry leads in terms of number of establishments

The final results of the 2016 Annual Survey of Philippine Business and Industry (ASPBI) showed that a total of 8,170 establishments in the formal sector of the economy were engaged in Human Health and Social Work Activities.

Among industries, private medical activities led the sector with 3,368 establishments, accounting for 41.2 percent of the total number of establishments. Private dental and laboratory services activities followed with 1,598 establishments (19.6%). Private general hospitals activities placed third with 1,155 establishments (14.1%).

Figure 1 displays the percentage distribution of all Human Health and Social Work Activities establishments by industry sub-class in 2016.

Private general hospitals activities industry employs the most number of workers

The total employment generated by the sector reached 178,905 in 2016. Out of this number, 176,148 (98.5%) were paid employees and the rest were working owners and unpaid workers.

Private general hospitals activities had the top most number of workers with 126,303 or 70.6 percent of the total employment for the sector. This was followed by private medical activities, which provided jobs to 22,063 workers (12.3%).

Other industries with more than a thousand number of workers in 2016 were the following:

• Private medical, dental and other health activities, n.e.c., 11,529 employees (6.4%)
• Private dental and laboratory services, 6,226 employees (3.5%)
• Charitable activities, 4,994 employees (2.8%)
• Other human health activities, 1,462 employees (0.8%)
• Other social work activities without accommodation, n.e.c., 1,318 employees (0.7%)
• Child care services, 1,180 employees (0.7%)

Figure 2 shows the distribution of employment for all Human Health and Social Work Activities establishments by industry sub-class in 2016.

Meanwhile, the average number of workers per establishment was recorded at 22. Among industries, five surpassed the national average in 2016, with private general hospitals activities leading the industries with 109 workers per establishment. The lowest average workers per establishment was recorded in private dental and laboratory service, and child care clinics with four workers per establishment.

Welfare and guidance counseling activities (elderly and disabled) industry pays the highest average annual compensation

In 2016, the sector paid a total compensation of PHP37.8 billion, translating to an average annual compensation of PHP214,733 per employee.

At the industry level, welfare and guidance counseling activities (elderly and disabled) was paid the highest average annual compensation of PHP390,350 per employee. Child-care activities (including for the handicapped) followed with an average annual compensation of PHP326,253 per employee.

Other industries that recorded more than PHP250,000 average annual compensation per employee in 2016 were as follows:

• Vocational rehabilitation and habilitation activities for disabled adults, PHP279,624 per employee
• Other human health activities, PHP272,662 per employee
• Charitable activities, PHP262,396 per employee

Figure 3 shows the average annual compensation per employee of the top five industries of the sector in 2016.

Private general hospitals activities industry generates the largest income and expense

Total income generated by the sector in 2016 amounted to PHP184.7 billion.

Among industries, private general hospitals activities contributed the highest share in income of PHP131.5 billion or 71.2 percent of the total. The next highest income generating industry was private medical activities with PHP21.9 billion or 11.9 percent of the total.

Other industries of the sector that earned more than PHP2.0 billion worth of income in 2016 were enumerated below:

• Private medical, dental and other health activities, n.e.c., PHP9.9 billon (5.4%)
• Charitable activities, PHP9.6 billion (5.2%)
• Private dental and laboratory services, PHP4.0 billion (2.1%)
• Other human health activities, PHP2.3 billion (1.2%)

On the other hand, total expense including compensation incurred by the sector amounted to PHP158.7 billion in 2016.

Industry-wise, private general hospitals activities incurred the highest expense amounting to PHP112.4 billion or more than half (70.8%) of the total expense for the sector. This was followed by private medical activities with PHP18.0 billion or 11.4 percent of the total.

Moreover, four other industries registered more than PHP2.0 billion each in expense accounting for 14.7 percent of the total and these were:

• Charitable activities, PHP9.0 billion (5.7%)
• Private medical, dental and other health activities, n.e.c., PHP8.7 billion (5.5%)
• Private dental and laboratory services, PHP3.6 billion (2.2%)
• Other social with activities without accommodation, n.e.c., PHP2.2 billion (1.4%)

Figure 4 shows the income generated and expense incurred for all Human Health and Social Work Activities establishments by industry sub-class in 2016.

Income per expense ratio stands at 1.16

The income generated per peso expense of the sector stood at 1.16. This means that for every peso spent in the operation of the sector’s business, PHP1.16 was generated as income.

By industry sub-class, child care clinics recorded the highest returns of 1.75, followed by caring for unwed mothers and children with 1.59 income per peso expense ratio. Third in ranked was child care services with income per expense ratio of 1.36.

Private general hospitals activities accounts for seventy percent of the total value added

The total value added generated by the sector was estimated at PHP83.1 billion in 2016.

Among industries, private general hospitals activities posted the highest value added worth PHP58.9 billion, accounting for 70.9 percent of the total value added for the sector.

Furthermore, five industries registered more than PHP1.0 billion worth of value added each and these were:

• Private medical activities, PHP8.6 billion (10.3%)
• Charitable activities, PHP6.4 billion (7.7%)
• Private medical, dental and other health activities, n.e.c., PHP4.1 billion (4.9%)
• Private dental and laboratory services, PHP1.6 billion (1.9%)
• Other human health activities, PHP1.0 billion (1.3%)

Most labor productive workers come from charitable activities industry

Labor productivity, computed as value added per total employment, was estimated at PHP464.3 thousand in 2016.

Workers of charitable activities were the most labor productive with Labor productivity of PHP1,288.2 thousand per worker. Welfare and guidance counseling activities for children and adolescents followed with Labor productivity of PHP735.7 thousand per worker. Other human health activities ranked third with Labor productivity of PHP717.7 thousand per worker.

Figure 5 displays the top five industries in terms of Labor productivity for all Human Health and Social Work Activities establishments in 2016.

Gross additions to tangible fixed assets records at PHP15.0 billion

Gross additions to tangible fixed assets (capital expenditures less sale of fixed assets) acquired by all establishments in Human Health and Social Work Activities was valued at PHP15.0 billion.

Among industries, private general hospitals activities acquired the highest gross additions to tangible fixed assets worth PHP13.5 billion (90.1%). Private medical activities ranked second with PHP580.4 million (3.9%). Private medical, dental and other health activities, n.e.c. placed third with PHP458.7 million (3.1%).

Total change in inventories reaches PHP2.3 billion

Change in inventories defined as the value of ending less beginning inventory amounted to PHP2.3 billion in 2016.

Private general hospitals activities had the highest change in inventories worth PHP1.9 billion (84.2%). This was followed by private medical activities with change in inventories of PHP242.3 million (10.5%). Completing the top three industries with highest change in inventories in 2016 was private medical, dental and other health activities, n.e.c. with PHP59.6 million (2.6%).

Total subsidies received amounts to PHP113.5 million

Subsidies granted by the government to support the business operations of the sector amounted to PHP113.5 million in 2016.

Among industries, seven received subsidies in 2016. Private general hospitals activities received more than half of the total subsidies from the government worth PHP72.9 million or 64.2 percent of the total. On the other hand, vocational rehabilitation and rehabilitation activities for disabled adults received the lowest subsidy amounting to PHP200 thousand or 0.2 percent of the total.

TECHNICAL NOTES

Introduction

This Special Release presents the final results of the 2016 Annual Survey of Philippine Business and Industry (ASPBI) for all Human Health and Social Work Activities establishments (sector Q).

The 2016 ASPBI is one of the designated statistical activities of the Philippine Statistics Authority (PSA). Data collected from the survey provide information on the levels, structure, performance, and trends of economic activities of the formal sector in the entire country for the year 2016.

The survey was conducted nationwide in 2017 with the year 2016 as the reference period of data, except for employment which is as of 15 November 2016.

Establishment Data Management System (EDMS) was utilized in the decentralized processing of 2016 ASPBI questionnaires in the provinces as well as the online accomplishment of questionnaire through the PSA website.

Data are presented by industry-class or 5-digit 2009 Philippine Standard Industrial Classification (PSIC) at the national and regional level.

Legal Authority

The conduct of the 2016 ASPBI is authorized under Republic Act 10625 known as the Philippine Statistical Act of 2013, which mandates reorganizing and strengthening of the Philippine Statistical System (PSS), its agencies and instrumentalities.

Scope and Coverage

The 2016 ASPBI covered establishments engaged in 18 economic sectors classified under the 2009 PSIC, namely:  

• 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 of Motor Vehicles and 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 Work Activities (Q)
• Arts, Entertainment and Recreation (R)
• Other Service Activities (S)

The survey was confined to the formal sector of the economy, which consists of the following:  

•  Corporations and partnerships
•  Cooperatives and foundations
•  Single proprietorship with employment of 10 and over
•  Single proprietorship with branches

Hence, the 2016 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).

Frame of Establishments

The frame for the 2016 ASPBI was extracted from the 2016 List of Establishments (LE). The estimated number of establishments in operation in the country in 2016 totaled to 902,213. About 294,494 establishments (32.6% of the total establishments) belong to the formal sector of which 255,403 (86.7%) comprised the establishment frame. This frame was used to draw the sample establishments for the survey.

Unit of Enumeration

The unit of enumeration for the 2016 ASPBI is the establishment. An establishment is defined as an economic unit under a single ownership or control which engages in one or predominantly one kind of activity at a single fixed location.

Taxonomy of Establishments

An establishment is categorized by its economic organization, legal organization, industrial classification, employment size and geographic location.

Economic Organization refers to the organizational structure or role of the establishment in the organization. An establishment may be single establishment, branch, establishment and main office with branches elsewhere, main office only, and ancillary unit other than main office. 

Legal Organization refers to the legal form of the economic entity which owns the establishment. An establishment may be single proprietorship, partnership, government corporation, stock corporation, non-stock corporation, and cooperative. 

Industrial Classification of an economic unit was 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 PSA Resolution No. 1 Series 2017-158 signed on 14 February 2017 was utilized to classify economic units according to their economic activities.

Size of an establishment 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.

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.

Geographic Classification  refers to the grouping of establishments 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 PSGC as of 31 December 2016 was used for the 2016 ASPBI.

Methodology

Sampling Design

Selection of sample establishment for the 2016 ASPBI was done using stratified systematic sampling with 5-digit PSIC serving as industry strata and employment size as the second stratification variable.

For establishments with TE of Less Than 20.

a.  Non-Certainty Stratum

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 

where:

      s = denotes the non-certainty employment strata in TE of 20            

   X_sj = value of the j^th establishment in the non-certainty employment stratum in TE of less than 20 in S^th industry domain

       j = 1,2,3,..., n_s establishments                                                

  W_sj = weight of the j^th establishment in the non-certainty employment stratum in TE of less than 20 in Sth industry domain

 

 

   N_s = total number of establishments in the non-certainty employment stratum in TE of less than 20 in Sth industry domain

    n_s = number of sample establishments in the non-certainty employment stratum in TE of less than 20 in Sth industry domain

 

b.  Certainty Stratum

       The total of a characteristic (X_c ) for the certainty employment stratum in the C^th industry domain was

where:

       c = denotes the certainty employment strata in TE of less than 20 in the cth industry       

   X_cj = value of the j^th establishment in the certainty employment strata in TE of less than 20 in the c^th industry domain

       j = 1,2,3,..., m_c establishments                                                 

  m_c = number of establishments in the certainty employment strata in TE of less than 20 in the c^th industry domain

 

c.  Total Estimate for TE of Less Than 20

For all sections except B and C, national level estimates of the total of a characteristic   for the industry domain was obtained by aggregating the estimates for all employment strata  (non-certainty and certainty) in the same industry domain,

 

where d denotes the industry domain.

For establishments with TE of 20 and over, the 18 administrative regions serve as the geographic domains while the 5-digit level of the 2009 PSIC serves as the industry domains.

Estimation Procedure for Establishments with TE of 20 and Over

a.  Non-Certainty Stratum (strata of TE 20 to 49 and TE 50 to 99)

Sections A, C, E, F, G, H, I, J, K, L, M, N, P, Q, R and S.

       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 

 

where:

      s = denotes the non-certainty employment strata in TE of 20 to 49 and TE 50 TO 99        

      p = 1, 2,..., 18 regions (geographic domains)        

   X_spj = value of the j^thestablishment in the non-certainty employment strata with TE of 20 to 49 and TE 50 to 99 for an industry domain in each region  

       j = 1,2,3,..., n_sp establishments                                                 

  W_spj = weight of the j^th establishment in the non-certainty employment strata with TE of 20 to 49 and TE 50 to 99 for an industry domain in each region                                                                                                                                                                                      

   N_sp = total number of establishments in the non-certainty employment strata in TE of 20 and over for an industry domain in each region

    n_sp = number of sample establishments in the non-certainty employment strata in TE of 20 and over for an for an industry domain in each region

 

b.  Certainty Stratum (Establishments under the following: Section B and D, ICT core industries, BPM industries, GOCC's and with TE 100 and over)

       The estimate of the total of a characteristic for the certainty employment stratum in an industry domain in each region

where:

       c = denotes the certainty employment strata in TE of 20 and over        

       p = 1,2,...18 regions (geographic domains)

   X_cpj = value of the j^th establishment in the certainty employment strata in TE of 20 and over for an industry domain in each region 

       j = 1,2,3,..., m_cp establishments                                                 

  m_cp = number of establishments in the certainty employment strata in TE of 20 and over in an industry domain within each region

 

   c.  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 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, defined as N/n, was recomputed as

Thus, the adjusted weight (W'_spj) for the non-certainty employment stratum for the industry domain with TE 20-99 was

Where:

 N_sp = total number of establishments in the non-certainty employment stratum with TE 20-99 for the industry domain within each geographic domain (region)

 n'_sp = number of responding establishments in the non-certainty employment stratum with TE of 20-99 for the industry domain within each geographic domain (region)

 

Response Rate

Response rate for all Human Health and Social Work Activities sector was 90.2 percent (736 out of 816 establishments). This included receipts of "good" questionnaires, partially accomplished questionnaires, reports of closed, moved out or out of scope establishments.

Of the total responses, 30 establishments responded online.

Reports of the remaining non-reporting establishments were taken from other available administrative data sources and financial statements from Securities and Exchange Commission (SEC). However, there were establishments which were found to be duplicates, out-of-scope and out of business in 2016.

Limitation of Data

Only the formal sector and private human health and social work activities were covered in the survey.

Concepts and Definitions of Terms

Establishment is an economic unit under a single ownership and control, i. e. under a single entity, engaged in one or predominantly one kind of economic activity at a single fixed location.

Economic activity is the establishment’s source of income. If the establishment is engaged in several activities, its main economic activity is that which earns the biggest income or revenue.

Total employment is the number of persons who worked in for the establishment as of 15 November 2016.

Paid employees are all persons working in 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 leave, paid vacation or holiday. Excluded are consultants, home workers, receiving pure commissions only, and workers on indefinite leave.

Compensation is the sum of 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.

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 refers to 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.

E-commerce refers to the selling of products or services over electronic systems such as Internet Protocol-based networks and other computer networks. Electronic Data Interchange (EDI) network, or other on-line system. Excluded are orders received from telephone, facsimile and e-mails.

Expense refers to cost incurred by the establishment during the year whether paid or payable. This is treated on a consumed basis. Valuation is at purchaser price including taxes and other charges, net of rebates, returns and allowances. Goods and services received by the establishment from other establishments of the same enterprise are valued as though purchased.

Value added  is gross output less intermediate input. Gross output for Human Health and Social Work Activities sector is the sum of the total income (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 expense items: materials and supplies purchased; fuels, lubricants, oils and greases purchased; electricity purchased, water purchased; industrial services done by others; non-industrial services done by others (less rent expense for land); goods purchased for resale; research and development expense; environmental protection expense; royalty fee; franchise fee; and other expense.