Medical and dental practices lead the section
The final results of the 2010 Annual Survey of Philippine Business and Industry (ASPBI) conducted nationwide for Human health and social work activities reported a total of 4,451 establishments. As shown in Figure 1, medical and dental practices activities garnered the highest number of establishments at 3,342 (75.1%). This was followed by establishments engaged in hospital activities with 871 (19.6%). Ranked third are the combined establishments engaged in social work activities without accommodation with 103 (2.3%). The rest of the activities contributed about 3.0 percent of the total.
Hospital activities employ the highest number of workers
Employment for the sector reached a total of 122,816. Out of the total, 119,504 or 97.3 percent were paid employees while the remaining 3,312 or 2.7 percent were working owners and unpaid workers.
Hospital activities had the most number of employees among the sector with 91,191 or 74.3 percent. This was followed by medical and dental practices activities with 26,717 or 21.8 percent. The remaining 3.9 percent (4,908) was accounted by other activities (see figure 2).
The sector’s average number of workers per establishment stood at 28. Hospital activities posted an average of 105 workers for every establishment. Other residential care activities ranked second with 29 workers per establishment. On the other hand, other human health activities had the lowest average with only 7 workers per establishment.
Workers engaged in other social work activities without accommodation are the highest paid employees
Total compensation paid by the sector amounted to PHP19.5 billion, translating to an average annual compensation of PHP162,880 per employee.
Among industries, the highest average annual compensation was received by employees in other social work activities without accommodation with PHP209,773. Employees in Other residential care activities followed next with an average annual compensation of PHP171,131 while Hospital activities placed third with PHP169,992. Figure 3 presents the average annual compensation of employees for Human health and social work activities establishments by industry group.
Hospital activities contribute the biggest share in revenue and cost
Revenue generated by the sector reached PHP84.3 billion. Hospital activities contributed the biggest share with PHP64.6 billion representing 76.6 percent of the total. Medical and dental practice activities and other social work activities without accommodation earned PHP15.6 billion or 18.5 percent and PHP2.3 billion or 2.8 percent, respectively.
Total cost (excluding compensation paid to employees) incurred by the sector amounted to PHP55.3 billion. Being the major contributors in revenue, Hospital activities also had the largest proportion in cost with PHP42.4 billion or 76.7 percent. Medical and dental practice activities incurred a total of PHP10.4 billion or 18.8 percent while other human health activities spent the least cost of PHP99 million or 0.2 percent. Figure 4 shows the revenue generated and cost incurred by the Human health and social work sector by industry group.
Revenue per cost stands at 1.52
Revenue-cost ratio, the revenue generated per peso cost, was estimated at PHP1.52. Among industries, Other residential care activities recorded the highest with PHP2.5 revenue per peso cost. On the other hand, revenue per peso cost for hospital activities, medical and dental practices activities and other human health activities matched the national average.
Value added reaches PHP37.7 billion
Value added was estimated at PHP37.7 billion. Among industries, hospital activities generated the biggest share to value added accounting for PHP29.3 billion or 77.7 percent. Medical and dental practice activities distantly followed with PHP6.6 billion or a share of 17.4 percent. Figure 5 displays the distribution of value added by industry group.
Other residential care activities reports the higher labor productivity
Value added per worker, a measure of labor productivity, amounted to PHP307,063 for this sector. Among industries, other residential care activities had the highest value added per worker with PHP678,330. Hospital activities was estimated at PHP321,363 while residential care activities for mental retardation, mental health and substance abuse industry reported the least at PHP132,914.
Gross additions to tangible fixed assets totals to PHP10.1 billion
Gross additions to fixed assets, defined as capital expenditures less sale of fixed assets, totaled to PHP10.1 billion.
By industry, medical and dental practices activities acquired the highest addition to its fixed assets amounting to PHP5.2 billion or 51.4 percent. Hospital activities ranked second with PHP4.8 billion or 47.8 percent. Residential care activities for mental retardation, mental health and substance abuse contributed the least with PHP5.2 million.
Change in inventories values at PHP636.4 million
Change in inventories (ending less beginning inventory) amounted to PHP636.4 million. Among industries, hospital activities recorded the highest with PHP492.8 million followed by medical and dental practice activities with inventories amounting to PHP117.5 million.
The 2010 Annual Survey of Philippine Business and Industry (ASPBI) is a continuing activity of the National Statistics Office (NSO) which aims to provide key measures on the performance, levels, structure and trends of economic activities in the entire country for the year 2010. It is one of the designated statistical activities of the government and as such the survey generates the most critical and essential statistics required for economic planning and analysis.
The 2009 Philippine Standard Industrial Classification (PSIC) was adopted for the first time in this round. This is the latest version of the classification of industries in the country released by the NSCB after the 1994 PSIC was amended in 2002. It conforms with the International Standard Industrial Classification (ISIC) Revision 4 prescribe by the United Nations, but with modifications to suit national situation and requirement. The PSIC is a statistical classification of all economic activities, designed as a guide and a comprehensive framework for securing uniformity and comparability of both the government and private sectors.
The conduct of the ASPBI is governed by legislative acts and presidential directives, specifically Commonwealth Act No. 591 which was approved on August 19, 1940.
Scope and Coverage
The 2010 ASPBI covered establishments engaged in 18 economic sections classified under the 2009 Philippine Standard Industrial classification (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 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)
The scope of the ASPBI was confined to "formal sector" only, which consists of the following:
- Corporations and partnership
- Cooperatives and foundations
- Single proprietorship with employment of 10 and over
- Single proprietorships with branches
Like all other establishment surveys conducted by the NSO, the 2010 ASPBI used establishment as the unit of enumeration. It is defined as "an economic unit under a single ownership or control, i.e. under a single legal entity, engaged in one or predominantly one kind of economic activity at a single fixed location".
Classification of Establishments
Before the actual selection of samples, the establishments listed in the frame were classified based on economic organization EO), legal organization (LO), industrial classification, employment size, and geographic location.
Economic organizations relates to the organizational structure or role of the establishment in the organization. The following are the types of economic organization:
- Single establishment is an establishment which has neither branch nor main office
- Branch only is an establishment which has a separate main office located elsewhere
- Establishment and main office, both located in the same address and with branches elsewhere
- Main office only is the unit which controls, supervises and directs one or more establishments of an enterprise
- Ancillary unit other than main office is the unit that operates primarily or exclusively for a related establishment or group of related establishments or its parent establishment and provides goods or services that support but do not become part of the output of those establishments
The legal organization provides the legal basis for ownership of the establishment. The following are the types of legal organization:
- Single Proprietorship refers to a business establishment organized, owned, and managed by one person, who alone assumes the risk of the business enterprise. The establishment name is that of a person, or it has words such as Owner, Proprietor or Operator
- Partnership 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. The establishment name includes words such as Owners , Partners, Limited or LTD., Associates or ASSOCS
- Government Corporation is a private corporation organized for private aim, benefit or purpose and owned and controlled by the government. The establishment name included words such as Corporation or CORP., INCORPORATED or INC
- Private Corporation is a corporation organized by private persons. The establishment name includes words such Corporation or Corp, Incorporated or INC
- Non-Stock, Non-Profit Corporation is a business corporation which does not issue stocks to its members and is 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. The establishment's name includes words such as Corporation or Corp., Incorporated or Inc
- Cooperativethe establishment name includes words such as Cooperative or COOP
The industrial classification of an economic unit is determined by the activity from which it derives its major income or revenue. The 2009 PSIC is utilized to classify units according to their economic activities. It was approved for adoption by government agencies and instrumentalities through NSCB Resolution # 2 Series of 2010 signed on February 10, 2010. It will be used for the first time for ASPBI.
The 2009 PSIC consists of an alpha character and 5 numeric digits. The alpha character, which represents the major division, is denoted by the characters A to S. The first two numeric digits represent the division; the first three numeric digits, the group; the first four digits, the class; and the 5 digits, the sub-class.
The size of the establishment is determined by its total employment (TE). The following are the employment size classification used in the 2010 ASPBI:
The geographic or physical location of the establishments was classified in accordance with the Philippine Standard Geographic Code (PSGC) as of December 31, 2010 which contains the latest updates on the number of regions, provinces, cities, municipalities and barangays in the Philippines.
The geographic domains of the 2010 ASPBI for establishments with TE of 20 and over are the 17 administrative regions while the whole country serves as the geographic domain for establishments with TE of less than 20.
Hence, the samples of the 2010 ASPBI with TE of 20 and over shall provide data for 17 administrative regions. For samples with TE of less than 20, the data that will be presented is limited only at the national level.
A total of 811 or 97.13 percent of sample establishments responded. These include receipts of “good” questionnaires, partially accomplished questionnaires, reports of closed, moved out or out of scope establishments.
CONCEPTS AND DEFINITIONS OF TERMS
Economic activity or business is the activity of the establishment as classified under the 2009 Philippine Standard Industrial Classification (PSIC). Generally, the main activity of the establishment is the establishment's principal source of income. If the establishment is engaged in several activities, its main activity is that which earns the biggest income or revenue.
Total employment is the number of persons who worked in or for this establishment as of November 15, 2010.
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, workers receiving pure commissions only, and workers on indefinite leave.
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.
Revenue is the value of goods, products/by-products sold and/or services rendered to others whether paid in cash or is considered receivable by the establishment. Valuation of products/by products sold should be in producer's price (ex-establishment), net of discounts and allowances, including duties and charges but excluding subsidies. It also include goods transferred and/or services rendered to other establishment belonging to the same enterprise as the said establishment which should be treated as sales or as if sold to a customer; and revenue from products on a contractual basis from materials supplied by the establishment.
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.
Fixed assets are physical assets expected to have productive lives of more than one year and intended for use and/or being used by the establishment. Included are land, buildings, other structures and land improvements, transport equipment, machinery and equipment, furniture, fixtures, and other fixed assets.
Book value of tangible fixed assets is the initial value or acquisition cost of tangible fixed assets less the accumulated depreciation.
Gross additions to tangible fixed assets is the sum of cost of new and used fixed assets acquired during the year, cost of alteration and improvements done by others and cost of fixed assets produced by the establishment less the value of sales of fixed assets during the year.
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 and water purchased; cost of industrial services done by others; cost of non-industrial services done by others; goods purchased for resale; research and experimental development expense; environmental protection expense; royalty fee; franchise fee and other cost.
Inventories refer to the stocks of goods owned by and 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 purchaser’s 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 is equivalent to the total value of inventories at the end of the year less the value at the beginning of the year.
Subsidies are special grants in the form of financial assistance or tax exemption or tax privilege given by the government to aid and develop an industry or production and to protect it against competition.