Medical and dental practice accounts for the biggest number of establishments

A total of 6,435 Human Health and Social Work Activities establishments were covered in the 2012 Census of Philippine Business and Industry (CPBI).   Of the total number, 5,441 establishments or 84.6 percent had total employment (TE) of less than 20.   The remaining 15.4 percent or 994 establishments had TE of 20 and over.

Medical and dental practice activities are presented in Table 1 accounted for almost three-fourths of the total number of establishments for the sector with 4,810 or 74.7%.   Hospital activities ranked far second with 921 (14.3%) followed by other social work activities without accommodation, n.e.c. with 332 or 5.2 percent.   On the other hand, residential care activities for the elderly and disabled recorded the least establishments with only 3 or 0.05 percent.   Figure 1 displays the percent distribution of establishments by industry group.

Most of the establishments are located in the National Capital Region (NCR)

At the regional level, NCR had the most number of establishments with 2,233 or 34.7 percent.   CALABARZON and Central Luzon placed second and third with 932 or 14.5 percent and 661 or 10.3 percent, respectively.

Hospital activities hire the highest number of workers

Total employment for this sector was registered at 140,438.  Out of this number, 135,101 or 96.2 percent were paid employees while the remaining 5,337 or 3.8 percent were working owners and unpaid workers.

By industry group, hospital activities was the largest employment generator which employed 101,117 workers or 72.0 percent of the total. Medical and dental activities provided jobs for 30,434 or 21.7 percent. On the other hand, residential care activities for the elderly and disabled employed the least with 43 employees or 0.03 percent.

Among regions, NCR recorded the largest cut in total employment with 50,940 workers or 36.3 percent followed by CALABARZON with 20,091 employees or 14.3 percent.  Central Visayas came third with 10,741 workers or 7.6 percent.   On the other hand, Autonomous Region in Muslim Mindanao recorded the least with 175 workers or 0.1 percent.

Workers engaged in hospital activities received highest pay

Total compensation paid by the sector amounted to PHP24.2 billion or equivalent to an average annual remuneration of PHP179.2 thousand per employee.

By industry group, hospital activities paid the highest compensation to its employees amounting to PHP18.9 billion or 77.9 percent of the total.   Medical and dental practices ranked second with PHP3.9 billion or 16.2 percent.   This was followed by establishments engaged in other social work activities without accommodation, n.e.c. with PHP822.1 million or 3.4 percent.

Human health and social work activities posted an average annual compensation of PHP179.2 thousand per paid employee.   Other social work activities without accommodation, n.e.c. employees received the highest average annual compensation of PHP238.6 thousand followed by other residential care activities, n.e.c. with PHP191.3 thousand and hospital activities with PHP189.9 thousand.   Distribution of average annual compensation per employee by industry group is shown in Figure 3.

Regionwise, NCR topped the labor payments amounting to PHP12.4 billion.   This was followed by workers in CALABARZON and Central Visayas with PHP2.4 billion and PHP1.8 billion, respectively.

Hospital activities contribute the biggest chunk in income and expense

Total income realized by the sector reached PHP106.9 billion.   Hospital activities had the largest proportion amounting to PHP80.5 billion or 75.3 percent of the total. Medical and dental practice activities came next with PHP20.2 billion or 18.9 percent.   On the other hand, residential care activities for the elderly and disabled generated the least with PHP10.0 million or 0.01percent.

Across the country, half of the total income was generated by establishments located in NCR with an estimated amount of PHP55.1 billion.   CALABARZON and Central Visayas came next with PHP10.5 billion or 9.8 percent and PHP8.5 billion or 8.0 percent.

Total expense spent for maintenance and operation of the sector amounted to PHP91.8 billion.   Being the major income contributor, hospital activities also had the largest proportion in expense with PHP71.1 billion or 77.4 percent.   This was followed by medical and dental practice activities with PHP15.4 billion or 16.8 percent.   Residential care activities for the elderly and disabled incurred the lowest amounting to PHP8.8 million or 0.01 percent.   Figure 4 shows the total income generated and total expense incurred by the Human health and social work activities section by industry group.

Income-expense ratio amounts to 1.2

Income per total expense ratio, the income generated per PHP1 expense, estimated to 1.2. Among industries, social work activities without accommodation for the elderly and disabled registered the highest with 1.4, indicating PHP1.4 indicating income per PHP1 expense. Three industries landed on the next spot namely medical and dental practice activities; residential nursing care facilities; and other residential care activities, n.e.c. with PHP1.3 income per PHP1 expense each.

Value added posts a value of PHP47.4 billion

The section generated a value added amounting to PHP47.4 billion. Among industries, hospital activities contributed the biggest portion to value added accounting for PHP35.1 billion or 74.1 percent. This was followed by medical and dental practice activities and other social work activities without accommodation, n.e.c. with respective shares of PHP9.8 billion or 20.7 percent and PHP1.3 billion or 2.8 percent.

Other social work activities without accommodation, n.e.c. most productive in 2012

Value added per worker, a measure of labor productivity, estimated to PHP338 thousand for this sector.  Among industries, Other residential care activities, n.e.c. had the highest value added per worker with PHP396 thousand.  Hospital activities was registered an amount of PHP347 thousand while other human health activities reported PHP64 thousand in labor productivity.

Gross addition to tangible fixed assets reaches PHP5.7 billion

Gross addition to tangible fixed assets totaled to PHP5.7 billion. Hospital activities recorded the highest with PHP5.0 billion or 88.6 percent. This was followed by medical and dental practice activities and other social work activities without accommodation, n.e.c. which acquired a total of PHP611 million (10.8%) and PHP89.3 million (1.6%)  gross additions to fixed assets.

The three leading regions in terms of gross addition to fixed assets were as follows: NCR with PHP2.5 billion or 43.7 percent, CALABARZON with PHP813.8 million or 14.4 percent and Central Visayas with PHP604.1 million or 10.7 percent to fixed assets.

Total change in inventories amounts to PHP794.5 million

Change in inventories, defined as the value of ending inventory less the beginning, amounted to PHP794.5 million.  Among industries, hospital activities recorded the highest with PHP790.9 million followed by other social work activities without accommodation, n.e.c. with PHP2.2 million and residential care activities for mental retardation, mental health and substance abuse with PHP1.7 million.

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.  Moreover, none of the establishments reported sales from e-commerce activities during the reference year.

TECHNICAL NOTES

Introduction

This Special Release presents the final results of the 2012 Census of Philippine Business and Industry (CPBI) for 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 2012 CPBI: 

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

Total response rate for Human Health and Social Work Activities sector was 97.4 percent (1,551 out of 1,593 establishments).  This included receipts of "good" questionnaires, partially accomplished questionnaires, reports of closed, moved out or out of scope establishments.

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 cost.  Gross output for the 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 and other cost.

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 rrefers 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