Medical and dental practice activities dominates the sector
The total number of establishments in the human health and social work activities sector was estimated at 6,729 according to final results of the 2014 Annual Survey of Philippine Business and Industry. About 85.3 percent or 5,741 establishments of the total number of the sector belong to establishments with total employment (TE) of less than 20 and the remaining 14.7 percent were establishments with TE of 20 and over.
Among the industry groups, almost three-fourths of the total number of establishments were accounted for medical and dental practice activities with 5,020 establishments or 74.6 percent. This was followed far behind by establishments engaged in hospital activities with 933 establishments or 13.9 percent while other social work activities without accommodation ranked third with 428 establishments or 6.4 percent of the total. Figure 1 shows the percentage distribution of establishments by industry group.
Hospital activities hire the bulk of workers in 2014
Total employment in human health and social work activities establishments was estimated at 158,166. Of the total, 126,705 or 80.1 percent were hired by establishments with TE of 20 and over and the remaining 31,460 employees or 19.9 percent by establishments with TE of less than 20.
Among industry group, hospital activities emerged as the top employer with 111,390 workers or 70.4 percent of the total employment, followed by medical and dental practice activities with 35,331 workers (22.3%). Ranked third was other social work activities without accommodation with 6,323 workers, accounting for 4.0 percent of the total employment. Figure 2 shows the distribution of employment by industry group.
Employees in “other human health activities” receive the highest average annual compensation
Total compensation paid by the sector amounted to PHP30.5 billion, indicating an average annual compensation of PHP198,937 per employee.
At the industry level, employees of other human health activities such as speech therapy, physical rehabilitation center, alternative medical clinic, occupational therapy, acupuncture clinic, etc. received the highest average annual compensation of PHP267,263. This was followed by employees of residential care activities for mental retardation, mental health and substance abuse with PHP244,308. Ranked third and fourth are employees in other residential care activities with PHP217,785 per employee and hospital activities with PHP201,147 per employee. Figure 3 shows the leading average annual compensation per employee by industry group.
Hospital activities is highest in income and expense
Income for the sector was estimated at PHP155.2 billion. The highest income generating industries were hospital activities with PHP101.3 billion or 65.3 percent and medical and dental practice activities with PHP34.7 billion or 22.4 percent, which contributed more than three-fourths of the total income for the sector.
Expense for operating the sector totaled PHP135.5 billion. Establishments engaged in hospital activities spent the largest with PHP87.2 billion or 64.4 percent. Industry of medical and dental practice activities incurred the second biggest with PHP30.6 billion or 22.6 percent followed by other social work activities without accommodation with PHP12.2 billion or 9.0 percent. Distribution of income and expense by industry group is displayed in Figure 4.
Income-expense ratio stands to 1.15
The sector generated an income per expense ratio of 1.15, which means that for every peso spent by the establishment corresponding income of PHP1.15, was generated. Among industries, social work activities without accommodation for the elderly and disabled and hospital activities surpassed the national income-expense ratio with 1.20 and 1.16 income per peso expense, respectively. The remaining industries registered below the national income-expense ratio.
Value added amounts to PHP65.8 billion
Value added was estimated at PHP65.8 billion. Almost 95.0 percent or PHP62.3 billion of the total value added of the sector was contributed by the following top three industry groups namely:
- Hospital activities with PHP45.8 or 69.6 percent
- Medical and dental practice activities with PHP12.2 billion or 18.6 percent
- Other social work activities without accommodation with PHP4.3 billion or 6.5 percent
Figure 5 shows the value added by industry group for the human health and social work activities sector in 2014.
Other residential care activities posts the highest labor productivity
Labor productivity was estimated at PHP415.7 thousand per worker for the sector. The highest labor productivity was registered by other residential care activities with PHP1,131.2 thousand per worker. Establishments engaged in other social work activities without accommodation placed second producing PHP673.1 thousand per worker. Social work activities without accommodation for the elderly and disabled came in third with PHP505.0 thousand per worker.
Gross addition to fixed assets accumulates to PHP12.4 billion
Gross addition to fixed assets in 2014 totaled to PHP12.4 billion with the hospital activities posting the highest amount of PHP8.6 billion or 69.7 percent. Establishments engaged in medical and dental practice activities followed with PHP3.6 billion or 29.1 percent and other social work activities without accommodation with PHP55.2 million or 0.4 percent.
No receipts from subsidies and sales from E-commerce in 2014
Establishments engaged in Human health and social work activities did not receive subsidies or any special grants in the form of financial assistance or tax exemption or tax privilege from the government for the year 2014. At the same time, none of the establishments reported sales from E-commerce activities during the reference year.
This Special Release presents the final results of the 2014 Annual Survey of Philippine Business and Industry (ASPBI) for the Human Health and Social Work Activities sector for all establishments in the formal sector of the economy.
The 2014 ASPBI is one of the designated statistical activities of the Philippine Statistics Authority (PSA). Data collected from the survey will provide information on the levels, structure, performance and trends of economic activities of the formal sector of the economy for year 2014. It will also serve as benchmark information in the measurement and comparison of national and regional economic growth.
The survey was conducted nationwide in April 2015 with the year 2014 as the reference period of data, except for employment which is as of November 15, 2014.
Data are presented at the national, regional and industry group or 3-digit 2009 Philippine Standard Industrial Classification (PSIC). .
Data collection was intensified through the use of web-based or online accomplishment of questionnaire through the PSA website and downloading of e-questionnaire and submission thru email.
The conduct of the 2014 ASPBI is authorized under Republic Act 10625 known as the Philippine Statistical Act of 2013 - Reorganizing and strengthening of the Philippine Statistical System (PSS), its agencies and instrumentalities.
Scope and Coverage
The 2014 ASPBI is a nationwide undertaking confined to the formal sector of the economy and as such excluded the informal sector. The following comprise the formal sector:
- Corporations and partnerships
- Cooperatives and foundations
- Single establishment with employment of 10 or more
- Single proprietorship with branches
Hence, the 2014 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).
The initial estimate of the 2014 LE shows that there are about 944,500 establishments in operation in the country for the year. About 266,000 establishments (28% of the total establishments) belong to the Formal Sector of which 231,000 (87%) comprise the establishment frame.
Listed below are the 18 economic sectors within the scope of the 2014 ASPBI classified under the 2009 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 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 Work Activities (Q)
- Arts, Entertainment and Recreation (R)
- Other Service Activities (S)
Unit of Enumeration
The unit of enumeration for the 2014 ASPBI is 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) refers to the organizational structure or role of the establishment in the organization.
Legal Organization (LO) refers to the legal form of the economic entity that provides the legal basis for ownership of the establishment.
Industrial Classification 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 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 is 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 December 31, 2014 was used for the 2014 ASPBI.
Selection of sample establishment for the 2014 ASPBI 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.
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 stratum TE less than 20 in the sth industry domain was
- s = denotes the non-certainty employment strata in TE of less than 20
- Xsj = value of the jth establishment in non-certainty employment stratum in TE of less than 20 in Sth industry domain
- j = 1,2,3..., ns establishments
- Wsj = weight of the jth establishment in the non-certainty employment stratum of less than 20 in the sth industry domain
- Ns = total number of establishments in the non-certainty employment stratum in TE of less than 20 in the sth industry domain
- ns = number of sample establishments in the non-certainty employment stratum in TE of less than 20 in sth domain
b. Certainty Stratum
The total of a characteristic for the certainty employment stratum in the Cth industry domain was
- c = denotes the certainty employment strata in TE of less than 20 in the cth industry
- xcj = value of the jth establishment in the certainty employment strata in TE of less than 20 in the cth industry domain
- j = 1,2,3,..., mc establishments
- mc = number of establishments in the certainty employment strata in TE of less than 20 in the cth 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 obtain 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
a. Non-Certainty Stratum (strata of TE 20 to 49 and TE 50 to 99 for Sections 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 selected industry domain in each region was as
- s = denotes the non-certainty employment strata in TE 20 and over
- p = 1,2,...,17 regions geographic domains
- xspj = value of the jth establishment in the certainty employment strata in TE of 20 and over for an industry domain in each region
- j = 1,2,3..., nsp establishments
- Wspj = weight of the jth establishment in the non-certainty employment strata in TE of 20 and over for an industry domain in each region
- Nsp = total number of establishments in the non-certainty employment strata in TE of 20 and over for an industry domain in each region
- nsp = number of sample establishments in the non-certainty employment strata in TE of 20 and over for an industry domain in each region
b. Certainty Stratum
The the total of a characteristic for the certainty employment stratum in TE of 20 and over in an industry domain in each region was
- c = denotes the non-certainty employment strata in TE of 20 and over
- p = 1,2,...17, regions (geographic domains)
- xcpj = value of the jth establishment in the certainty employment strata in TE of 20 and over in an industry domain within each region
- j = 1,2,3..., mcp establishment
- mcp = number of establishments in the certainty strata in TE of 20 and over in an industry domain in 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 (geographic domain) was obtained by aggregating the estimates for all employment strata (non-certainty and certainty) in the same industry
where dp denotes the industry domains in each region.
National level estimates of the characteristics by industry domain were obtained by aggregating separately the estimates (Xdp) for the particular industry domain from all the regions.
Weight Adjustment Factor for Non-Response
To account for non-response in the non-certainty strata, the adjustment factor (n/n’) was multiplied 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’sj) for employment stratum in TE 1-9 or TE 10-19 was
- Ns = total number of establisments in the employment stratum in TE 1-9 or TE 10-19 in the sth industry domain
- n's = number of responding establishments in the employment stratum in TE 1-9 or TE 10-19 in the sth industry domain
For the non-certainty employment stratum for the selected industry domain with TE 20-99, the adjusted weight (W'spj) was
- Nsp = total number of establisments in the non-certainty employment stratum with TE 20-99 for the selected industry domain within each geographic domain (region)
- n'sp = number of responding establishments in the non-certainty employment stratum with TE 20-99 for the selected industry domain within each geographic domain (region)
The questionnaire design is basically the same as that of the 2012 Census of Philippine Business and Industry. However, changes were made in the disaggregation of data items for fixed assets in support to the requirements of the 2008 Systems of National Accounts with respect to the generation of fixed capital formation.
The sample establishments responded also to the survey through the use of Web-based version of the 2014 ASPBI questionnaires which was accomplished online at the PSA website. Likewise, an e-questionnaire was also downloaded and submitted thru e-mail.
Field operations of the 2014 ASPBI were scheduled from April to July 2015.
Total response rate for Human Health and Social Work sector was 96.0 percent (845 out of 880 establishments). This included receipts of "good" questionnaires, partially accomplished questionnaires, reports of closed, moved out or out of scope establishments.
Of the total responses, ten establishments responded online.
Concepts and Definitions of Terms
Establishment is an economic unit under a single ownership control, i.e., under a single entity, engaged in one or predominantly one kind of economic activity at a single fixed location.
Total Employment is the number of persons who worked in for the establishment as of November 15, 2014.
Paid employees are all full-time and part-time employees working in or for the establishment and receiving pay, as well as those working away from the establishment and paid by and under the control of the establishment. Included also are all employees on sick or maternity leave, paid vacation or holiday and on strike. Excluded are directors paid solely for their attendance at meetings, consultants, workers on indefinite leave, working owners who do not receive regular pay, home workers and workers receiving pure commissions only.
Unpaid workers are working owners who do not receive regular pay, apprentices and learners without regular pay and persons working for at least 1/3 of the working time normal to the establishment without regular pay. Excluded are silent or inactive business partners.
Compensation is the sum of salaries and wages, separation, terminal pay and gratuities paid by the establishment to its employees and total employer’s 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 includes 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.
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.
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 equal to the sum of the total income (less interest income from land, dividend income, royalty income and franchise income), capital expenditures of fixed assets produced on own account, and change in inventory. Intermediate input is equal to the sum of the following expense items: materials and supplies; fuels, lubricants, oils and greases; electricity and water; industrial services done by others; non-industrial services done by others (less rent expense for land); goods purchased for resale; research and experimental development expense; environmental protection expense; royalty fee; franchise fee and other expense; less change in inventory of materials and supplies; fuels, lubricants, oils and greases; and goods for resale; research and development expense; environmental protection expense; royal fee; franchise fee and other expense.
Gross addition to tangible fixed assets is equal to capital expenditures less sale of fixed assets, including land.
Change in total inventories is computed as the total of ending inventory less the total beginning inventory.
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.
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.