Hospital activities and medical and dental activities dominate the sector
- The 2005 Annual Survey of Philippine Business and Industry covered a total of 30,312 health and social work establishments nationwide. Of the total figure, 97.9 percent or 29,665 establishments had an average total employment (ATE) of less than 20 while the remaining 2.1 percent or 647 establishments had ATE of 20 or more.
- Establishments providing hospital activities and medical and dental practices (N851) dominated the sector with 30,081 or 99.2 percent of the total. The rest were engaged in social work activities (N853) with 203 establishments or 0.7 percent and veterinary activities (N852) with 28 establishments or 0.1 percent. Figure 1 displays the distribution of health and social work establishments by industry group.
Hospital activities and medical and dental practices employ the most number of workers
- Total employment generated during the year was placed at 146,174. Health and social work establishments with ATE of 20 or more hired the biggest number of workers at 73,394 representing 50.2 percent of total employment.
- The hospital activities and medical and dental practices (N851), having the highest number of establishments, absorbed the bulk of workers equivalent to 97.5 percent of the total. This was followed by establishments engaged in social work activities (N853) and veterinary activities (N852) with 3,612 or 2.5 percent and 93 or 0.1 percent respectively. Figure 2 shows the distribution of employment by industry group.
Average monthly compensation per paid employee is Php9,256
- Total compensation paid for all health and social work establishment in 2005 amounted to Php13.2 billion or an average monthly compensation of Php9,256 per paid employee. On the average, employees of veterinary activities (N852) were the highest earners with Php11,245 per month. The least paid were those engaged in social work activities with only Php9,140 per month. (See Figure 3 for average monthly compensation per paid employee by industry group.)
- Total revenue earned by all health and social work establishments in the country was estimated at Php55 billion. Hospital activities and medical and dental practices generated the highest revenue amounting to Php53.4 billion or 97.2 percent of the total. The remaining amount was generated by social work activities and veterinary with Php1.4 billion or 2.7 percent and Php39.9 million or 0.1 percent respectively.
Operational cost totals to Php35.5 billion
- Total cost spent to operate and maintain health and social work establishments reached Php35.5 billion. Figure 4 shows the distribution of revenue and cost by industry group.
Gross additions to fixed assets reach Php14.2 billion
- Gross additions to fixed assets accounted by health and social work establishments amounted to Php14.2 billion. Industry wise, hospital activities and medical and dental practices recorded the largest with 99.8 percent amounting to Php14.2 billion while the remaining 0.2 percent shared by social work activities and veterinary activities.
Change in inventories amounts to Php888.1 million
- From the inventory reports of health and social work establishments, change in inventories amounted to Php888.1 million.
- Labor productivity for the sector, measured as revenue per worker was valued at Php376 thousand.
Scope and Coverage
The 2005 Annual Survey of Philippine Business and Industry (ASPBI) was conducted to collect information on the structure and trends of economic activities in the entire country for the year 2005. Covered were establishments engaged in economic activities as defined under the 1994 Philippine Standard Industrial Classification (PSIC). These establishments were classified into 14 sectors, one of which is on Health and social work establishments (Sector N). The sector is composed of establishments engaged in hospital activities and medical and dental practices (N851), veterinary activities (N852) and social work activities (N853).
All health and social work establishments nationwide with average total employment (ATE) of 100 and over were covered on a 100 percent basis and those with ATE less than 100 were selected using simple random sampling.
A total of 629 or 97.67% responded out of the 644 samples drawn for the sector but the effective response rate is 88.98 percent only.
Concepts and Definition of Terms
Establishment - an economic unit, which engages under a single ownership or control, i.e. under a single legal entity, in one, or predominantly one kind of economic activity at a single fixed location.
Economic activity or business - is the activity of the establishment as classified under the1994 Philippine Standard Industrial Classification (PSIC). The main activity refers to the activity that contributes the biggest or major portion of the gross income or revenue of the establishment.
Total Employment - is the number of persons who worked in or for the establishment as of November 15, 2005.
Paid employees - are all persons working in the establishments receiving pay as well as those working away from the establishment when paid by and under the control of the establishment. Included are persons working as full-time or part-time and those employees on sick leave, paid vacation or holiday. Excluded are consultants, home workers and workers receiving commission only.
Unpaid workers - include working owners who do not receive regular pay, apprentices and learners without regular pay, and persons working without regular pay for at least one third of the working time normal to the establishment.
Salaries and wages - are payments in cash or in kind, prior to deduction for employees contribution to SSS/GSIS, withholding tax, etc. Included are total basic pay, vacation, sick, maternity leave pay, overtime pay, and other benefits.
Revenue - refers to cash received and receivables for goods sold and services rendered.
Cost - refers to all expenses excluding compensation incurred during the year whether paid or payable. Valuation should be at market 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.
Gross additions to fixed assets - refer to the cost of acquisition of fixed assets acquired in 2005 less the value of sales of fixed assets during the year.
Fixed assets - are physical assets expected to have productive life of more than one year and intended for use and/or being used by the establishment. Included are land, buildings, fixtures, machinery, tool, furniture, office equipment, vehicles, and the like.
Subsidies - are special grants in the form of financial assistance or tax exemption or tax privilege given by the government to develop an industry or production and to protect it against competition.
Inventories - refer to stocks of goods owned by or under the control of the establishment as of a fixed date, regardless of where the stocks are located. Valuation should be at current replacement cost in purchasers price at the indicated dates. Replacement cost is the cost of an item in terms of its present price rather than its original price.
Change in Inventories - as a derived indicator is computed as the value of ending inventory less the value of beginning inventory.
Value Added - is the total revenue plus capital expenditures (own account) plus change in inventories less total cost (net of indirect taxes, interest, bad and doubtful debts and depreciation).
Source: National Statistics Office