Hospital activities lead the sector

Preliminary results of the 2012 Census of Philippine Business and Industry showed that a total of 951 establishments with total employment (TE) of 20 and over were engaged in Human Health and Social Work Activities.

As shown in Table 1, hospital activities garnered more than two-thirds of the total number of establishments in the sector with 652 or 68.6%. Medical and dental activities ranked far second with 214 (22.5%) followed by other social work activities without accommodation, n.e.c. with 34 or 3.6 percent. On the other hand, other human health activities recorded only four establishments (0.4%). Figure 1 shows the percent distribution of establishments by industry group.

Majority of establishments are in the National Capital Region (NCR)

At the regional level, NCR had the most number of establishments with 291 or 30.6 percent. CALABARZON and Central Luzon placed second and third with 149 or 15.7 percent and 88 or 9.3 percent, respectively. (Table 2)

Hospital activities employ the highest number of workers

Employment reached a total of 108,875. Out of this total, 106,888 or 98.2 percent were paid employees while the remaining 1,987 or 1.8 percent were working owners and unpaid workers.

Figure 2 shows that hospital activities, having the highest number of establishments, had the most number of employees with 94,564 or 86.9 percent followed by medical and dental industry with 8,785 or 8.1 percent. On the other hand, other human health activities registered 100 employees or 0.1 percent.

Among regions, NCR was the top employer with a total employment of 39,705 or 36.5 percent followed by CALABARZON with 15,390 employees or 14.1 percent.

Workers engaged in other social work activities without accommodation, n.e.c. are the highest paid employees

Total compensation paid by the sector amounted to PHP20.7 billion, translating to an average annual compensation of PHP194.0 thousand per employee.

Across industries, hospital activities paid the highest compensation to its employees amounting to PHP18.0 billion or 87.0 percent of the total. Medical and dental practices placed second with PHP1.6 billion or 7.7 percent. On the other hand, other human health activities paid the least with PHP4.6 million or 0.02 percent.

Human health and social work activities paid an average annual compensation of PHP194.0 thousand per paid employee.  Other social work activities without accommodation, n.e.c. employees received the highest average annual compensation of PHP288.4 thousand followed by hospital activities with PHP193.8 thousand and residential care activities for mental retardation, mental health with PHP186.1 thousand. Distribution of average annual compensation per employee by industry group is shown in Figure 3.

Across regions, NCR topped the labor payments amounting to PHP10.9 billion. This was followed by workers in CALABARZON and Central Visayas with PHP1.9 and PHP1.6 billion, respectively.

Hospital activities contribute the biggest share in income and expense

Total income realized by the sector reached PHP91.5 billion. Hospital activities had the biggest share with PHP77.3 billion or 84.5 percent of the total. Medical and dental practice activities came next with PHP8.2 billion (8.9%). On the other hand, other human health activities shared the least with PHP14.1 million (0.02%).

Total expense (excluding compensation paid to employees) amounted to PHP60.0 billion. Being the major income contributor, hospital activities also had the largest proportion in cost with PHP50.3 billion (83.9%) and medical and dental practice activities with PHP4.9 billion (8.2%). Other human health activities incurred the lowest expense of PHP6.4 million (0.01%). Figure 4 shows the income generated and expense incurred by the Human health and social work activities section by industry group.

At the regional level, NCR produced the highest income amounting to PHP46.0 billion.

Income-expense ratio amounts to 1.5

Income-expense ratio, the income generated per PHP1 expense, amounted to 1.5. Among industries, other social work activities without accommodation, n.e.c. registered the highest with 2.3, indicating PHP2.3 income per PHP1 expense, followed by other human health activities with PHP 2.2 and medical and dental practice activities with PHP1.7 per PHP1 expense.

Value added amounts to PHP37.8 billion

Value added was estimated at PHP37.8 billion. Among industries, hospital activities generated the biggest share to value added accounting for PHP33.6 billion or 88.9 percent. Medical and dental practice activities followed with only PHP3.7 billion or a share of 9.8 percent.

Other social work activities without accommodation, n.e.c. reports the higher labor productivity

Gross Value added per worker, a measure of labor productivity, amounted to PHP347 thousand for this sector. Among industries, Other social work activities without accommodation, n.e.c. had the highest value added per worker with PHP498 thousand. Medical and dental practice activities was estimated at PHP423 thousand while Other human health activities reported PHP82 thousand in labor productivity.

Gross addition to fixed assets totals PHP5.4 billion

Gross addition to fixed assets totaled to PHP5.4 billion. Hospital activities recorded the highest gross additions to fixed assets with PHP5.0 billion (93.1%). Other social work activities without accommodation, n.e.c. contributed the lowest with PHP156.4 million.

By region, NCR posted the highest additions to fixed assets with PHP2.4 billion or 44.3 percent. CALABARZON followed with PHP805.9 million or 15.0 percent. Central Visayas ranked third with PHP694.4 million or 13 percent. Meanwhile, MIMAROPA added PHP1.5 million or 0.03 percent to fixed assets.

Total change in inventories amounts to PHP886.8 million

Change in inventories, defined as the value of ending inventory less the beginning, amounted to PHP886.8 million. Among industries, hospital activities recorded the highest with PHP1.0 billion followed by other social work activities without accommodation, n.e.c. with PHP1.5 million and residential care activities for mental retardation, mental health and substance abuse with PHP1.0 million.

At the regional level, NCR registered the highest change in inventories with PHP224.1 million or 25.3 percent. Western Visayas followed next with PHP187.7 million or 21.2 percent. Central Visayas ranked third with PHP126.5 million or 14.3 percent of the total.

Subsidies and Sales from E-Commerce

Subsidies are grants received from the government in the form of financial assistance or tax exemption to aid and develop an industry. Establishments engaged in human health and social work activities did not receive any subsidies from the government for the year 2012.

E-Commerce refers to the selling of products or services over electronic systems. None of the establishments reported sales from e-commerce activities during the reference year.

Total asset reaches PHP146.7 billion

Total assets of all human health and social work establishments was estimated at PHP146.7 billion. Hospital activities accounted for the biggest share of PHP106.5 billion or 72.6 percent. Other social work activities without accommodation, n.e.c. followed with PHP26.2 billion or 17.9 percent. Medical and dental practice activities ranked third with PHP6.9 billion or 4.7 percent.

Across regions, the usual top three occupied the spot namely: NCR with PHP66.3 or 45.2 percent, Central Visayas followed with PHP32.0 billion or 21.8 percent and CALABARZON with PHP16.5 or 11.2 percent.

TECHNICAL NOTES

Introduction

This Special Release presents the preliminary results of the 2012 Census of Philippine Business and Industry (CPBI) for the Human Health and Social Work Activities sector for establishments with total employment of 20 and over.

The 2012 CPBI is the forerunner of the 2006 CPBI and one of the designated statistical activities of the former National Statistics Office (NSO) now Philippine Statistics Authority (PSA). Data collected from the census will provide information on the levels, structure, performance and trends of economic activities of the formal sector of the economy for the reference period 2012.  It will also serve as benchmark information in the measurement and comparison of national and regional economic growth.

To provide establishment respondents ease in accomplishing the 2012 CPBI questionnaires, the income and expense account in the Financial Statement of establishment was adopted in the design of 2012 CPBI sectoralquestionnaires. 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 NSO website and downloading of e-questionnaire and submission thru e-mail.

Legal Authority

The conduct of the CPBI is governed by authority of the following legislative acts and presidential directives:

• Commonwealth Act No. 591 An Act to Create the Bureau of the Census and Statistics to consolidate statistical activities of the government therein which was approved on August 19, 1940. This empowers the Bureau, among other things, to prepare for and undertake all censuses of population, agriculture, industry and commerce.

• Presidential Decree No. 418 dated March 20, 1974 reconstituted the Bureau of the Census and Statistics as a new agency to be known as the National Census and Statistics Office (NCSO), under the administrative supervision of the National Economic Development Authority (NEDA).

• Executive Order No. 121 Reorganization Act of the Philippine Statistical System, dated August 4, 1987 renamed the National Census and Statistics Office (NCSO) to National Statistics Office which shall be the major statistical agency responsible for generating general purpose statistics and undertaking such censuses and surveys.

• Executive Order 352 Designation of Statistical Activities that will generate critical data for decision-making by the Government and the Private Sector, dated July 1, 1996.

• Executive Order 5 Strengthening the National Statistics Office, dated July 29, 1998.

   

Scope and coverage

The 2012 CPBI was a nationwide undertaking confined to the formal sector of the economy and as such excluded the informal sector. The following comprise the formal sector:

1. Corporations and partnerships

2. Cooperatives and foundations

3. Single establishment with employment of 10 or more

4. Single proprietorship with branches

The scope of the ASPBI was confined to “formal sector” only, which consists of the following:.

• 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 Classificatin (PSIC). 

The initial count of the 2012 List of Establishments (LE), the frame used to draw the sample establishments for the 2012 CPBI, registered a total of 945,000 establishments in operation nationwide in 2012.  Out of this number, 72 percent or 680,400 establishments belong to the informal sector and only 28 percent or 262,800 establishments made up of the formal sector.

Listed below are the 18 economic sectors within the scope of the 2012 CPBI classified under the 2009 Philippine Standard Industrial Classification (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 of Motor Vehicles and Motorcycles (G)

• Transport 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)

• Private Education (P)

• Human Health and Social Work Activities (Q) 

• Arts Entertainment, and Recreation (R)

• Other Service Activities (S)

Unit of Enumeration

The unit of enumeration for the 2012 CPBI 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 organization (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 (EO=2) is an establishment which has a separate main office located elsewhere.

• Establishment and main office (EO=3) is one where the establishments 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 propietorship 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 whatever 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 2012CPBI: 

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 September 30, 2012 was used for the 2012 CPBI.

Sampling Design

Selection of sample establishment for the 2012 CPBI was done using stratified systematic sampling with 3-digit or 5-digit PSIC serving as industry strata and employment size as the second stratification variable.

Response Rate

Field operations of the 2012 CPBI were scheduled from April to July 2013. As of July 2013, only 61.2 percent of the total sample questionnaires were received at the Central Office. About 90.2 percent collection of questionnaires was achieved only on November 2013.

Total response rate for Human Health and Social Work Activities sector was 92.8 percent (1,479 out of 1,593 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 establishments responded online, one establishment accomplished an e-questionnaire and one establishment submitted in portable document format (PDF) through e-mail.

For establishments with TE 20 and over, the response rate was 95.1 percent.

CONCEPTS AND DEFINITIONS OF TERMS

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 November 15, 2012.

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 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, 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.

Cost refers to all expenses incurred during the year whether paid or payable. Valuation is at purchaser prices 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.

Expenses refers to cost incurred by the establishment during the year whether paid or payable. This is treated on a consumed basis.

Intermediate cost refers to expenses incurred in the production of goods such as materials and supplies purchased, fuels purchased, electricity purchased, and agricultural/forestry/fishery and industrial services done by others plus beginning inventory of materials, supplies and fuels less ending inventory of materials, supplies and fuels.

Value added is gross output less intermediate input. Gross outputfor 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.

Value of output represents the sum of the receipts from products and by-products sold, agricultural/forestry/fishery services rendered, industrial services, and goods sold in the same condition as purchased less the cost of goods sold; and value of fixed assets produced on own account and change in inventories of finished products and work-in-progress.

Gross addition to tangible fixed assets is equal to capital expenditures less sale of fixed assets, including land.

Change in inventories is equivalent to the value of inventories at the end of the year less the value of inventories at the beginning of the year.

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.

Total assets are resources including land owned and/or controlled by the establishment as a result of past transactions and events from which future economic benefits are expected to flow to the establishments.

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
               Manila, Philippines