Private medical activities leads the sector in terms of number of establishments

The final results of the 2015 Annual Survey of Philippine Business and Industry (ASPBI) showed that a total of 6,603 establishments in the formal sector of the economy were engaged in Human Health and Social Work Activities.

Among industries, private medical activities led the sector with 2,696 establishments, accounting for 40.8 percent of the total number of establishments. Private general hospitals activities ranked second with 1,074 establishments or 16.3 percent. Private dental and laboratory services with 1,006 establishments or 15.2 percent.

Figure 1 displays the percentage distribution of all Human Health and Social Work Activities establishments by industry sub-class in 2015.

Private general hospital activities employs the most number of workers

Total employment generated by the sector reached 168,889 workers in 2015. Paid employees constituted 165,781 or 98.2 percent and the remaining 3,108 or 1.8 percent were working owners and unpaid workers.

Across industries, private general hospitals activities recorded the largest share in total employment with 120,633 or 71.4 percent of the total. This was followed by private medical activities, providing jobs to 21,931 workers (13.0%).

Other industries with more than a thousand employees were the following:

• Private medical, dental and other health activities, n.e.c., 9,669 employees (5.7%),
• Charitable activities, 5,096 employees (3.0%),
• Private dental and laboratory services, 4,198 employees (2.5%),
• Other social work activities without accommodation, n.e.c., 1,430 employees (0.8%),
• Child care services, 1,108 employees (0.7%), and
• Other human health activities, 1,093 employees (0.6%).

Figure 2 shows the distribution of employment for all Human Health and Social Work Activities establishments by industry sub-class in 2015.

Meanwhile the average number of worker per establishment was recorded at 26. Among industries, three surpassed the national average in 2015. These include private general hospitals activities with 112, child-care activities with 30 workers and residential nursing care facilities with 28 workers per establishments.

Welfare and guidance counseling activities (elderly and disabled) industry pays the highest average annual compensation

In 2015, the sector paid a total compensation of PHP34.3 billion, translating to an average annual compensation of PHP207,192 per employee.

At the industry level, welfare and guidance counseling activities (elderly and disabled) were paid the highest average annual compensation of PHP315,011. Employees of welfare and guidance counseling activities for children and adolescents followed with an average annual compensation of PHP306,565.

Other industries that recorded more than PHP200,000 average annual compensation were as follows:

• Caring for the aged and orphans, PHP248,738
• Charitable activities, PHP222,664
• Other human health activities, PHP218,812
• Other social work activities without accommodation, n.e.c., PHP213,379
• Private general hospitals activities, PHP211,222
• Child-care activities (including for the handicapped), PHP207,268
• Private medical activities, PHP202,874

Figure 3 shows the average annual compensation per employee of the top five industries of the sector in 2015.

Private general hospitals activities generates the biggest share in income and expense

Total income generated by the sector in 2015 amounted to PHP169.8 billion.

Private general hospitals activities contributed the highest share in income of PHP117.5 billion or 69.2 percent of the total. Next largest income generating industry was private medical activities industry with PHP23.4 billion or 13.8 percent of the total.

Other industries with more than one billion pesos mark in total income in 2015 were:

• Charitable activities, PHP10.9 billion (6.4%),
• Private medical, dental and other health activities, n.e.c., PHP8.0 billion (4.7%),
• Private dental and laboratory services, PHP2.7 billion (1.6%),
• Other social work activities without accommodation, n.e.c., PHP2.3 billion (1.3%), and
• Other human health activities, PHP1.1 billion (0.6%).

Total expense including compensation incurred by the sector amounted to PHP147.2 billion in 2015.

Among industries, private general hospitals activities incurred the highest expense amounting to PHP101.4 billion or more than half (68.9%) of the total. This was followed by private medical activities with PHP19.7 billion or 13.4 percent of the total. More over, four industries registered more than one billion pesos worth of expense accounting for 14.8 percent of the total and these were:

• Charitable activities, PHP10.7 billion (7.3%),
• Private medical, dental and other health activities, n.e.c., PHP7.1 billion (4.8%),
• Private dental and laboratory services, PHP2.2 billion (1.5%), and
• Other social work activities without accommodation, n.e.c., PHP1.8 billion (1.2%).

Figure 4 shows the income generated and expense incurred for all Human Health and Social Work Activities establishments by industry sub-class in 2015.

Income per expense ratio stands at 1.15

The income generated per peso expense of the sector stood at 1.15. This means that for every peso spent in the operation of the sector's business, PHP1.15 was generated as income.

By industry sub-class, child care clinics recorded the highest returns with 2.41, followed by other human health activities with 1.45 income per peso expense. Ranked third was other social work activities without accommodation, n.e.c. industry with 1.26 income per expense ratio.

Private general hospitals activities accounts for more than half of the total value added

Total Value added generated by the sector was estimated at PHP73.7 billion in 2015.

Among industries, private general hospitals activities posted the highest value added amounting to PHP51.7 billion, accounting for more than half or 70.1 percent of the total value added. This was followed by private medical activities with value added of PHP8.9 billion (12.1%). Completing the top three industries was charitable activities with PHP5.3 billion or 7.2 percent of the total.

Most productive are employees of child care clinics industry

Labor productivity, computed as value added per worker, was estimated at PHP436.4 thousand in 2015.

Child care clinics was the most productive among industries with a value added per worker worth PHP1,323.8 thousand. Charitable activities followed with PHP1,045.2 thousand while welfare and guidance counseling activities for children and adolescents ranked third with PHP637.8 thousand per worker

Figure 5 displays the top five industries for all Human Health and Social Work Activities establishments in terms of labor productivity in 2015.

Gross additions to tangible fixed assets records PHP12.7 billion

Gross additions to tangible fixed assets (capital expenditures less sale of fixed assets) acquired by all establishments in Human Health and Social Work Activities was valued at PHP12.7 billion.

More than half or 78.3 percent of the total gross additions to fixed assets was recorded by private general hospitals activities worth almost PHP10.0 billion. This was followed by charitable activities and private medical, dental and other health activities, n.e.c. with PHP1.1 billion (8.6%) and PHP1.1 billion (8.5%), respectively.

Total change in inventory reaches to PHP891.8 million in 2015

Change in inventories is defined as the value of ending less beginning inventory amounted to PHP891.8 million in 2015.

Two industries accounted for 97.2 percent of the total change in inventories, namely; private general hospitals activities with PHP796.6 million (89.3%) and private medical activities with PHP70.4 million (7.9%).

Total subsidies received amounts to PHP54.0 million in 2015

Subsidies granted by the government to support the business operations of the sector amounted to PHP54.0 million in 2015.

Rehabilitation of people addicted to drugs or alcohol received bulk of the subsidies from the government worth PHP33.6 million or 62.2 percent of the total.

TECHNICAL NOTES

Introduction

This Special Release presents the final results of the 2015 Annual Survey of Philippine Business and Industry (ASPBI) for all establishments of Human Health and Social Work Activities sector.

The 2015 ASPBI is one of the designated statistical activities of the Philippine Statistics Authority (PSA). Data collected from the survey provide information on the levels, structure, performance, and trends of economic activities of the formal sector in the entire country for the year 2015.

The survey was conducted nationwide in 2016 with the year 2015 as the reference period of data, except for employment which is as of November 15, 2015.

Establishment Data Management System (EDMS) was still utilized in the decentralized processing of 2015 ASPBI questionnaires in the province as well as the online accomplishment of questionnaire through the PSA website.

Data are presented at the national sub-class or 5-digit 2009 Philippine Standard Industrial Classification (PSIC)..

Legal Authority

The conduct of the 2015 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 2015 ASPBI covered establishments engaged in 18 economic sectors classified under the 2009 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 of Motor Vehicles and 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)

The survey was confined to the formal sector of the economy, which consists of the following:  

•  Corporations and partnerships
•  Cooperatives and foundations
•  Single proprietorship with employment of 10 and over
•  Single proprietorship with branches

Hence, the 2015 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).

Frame of Establishments

The frame for the 2015 ASPBI was extracted from the 2015 List of Establishments (LE). The estimated number of establishments in operation in the country in 2015 totaled to 909,786. About 259,386 establishments (29.0% of the total establishments) belong to the formal sector of which 223,821 (86.3%) comprised the establishment frame. This frame was used to draw the sample establishments for the survey.

Unit of Enumeration

The unit of enumeration for the 2015 ASPBI is the establishment. An establishment is defined as an economic unit under a single ownership or control which engages in one or predominantly one kind of activity at a single fixed location. 

Classification of Establishments

An establishment is categorized by its economic organization, legal organization, industrial classification, employment size and geographic location.

Economic Organization refers to the organizational structure or role of the establishment in the organization. An establishment may be single establishment, branch, establishment and main office with branches elsewhere, main office only, and ancillary unit other than main office. 

Legal Organization refers to the legal form of the economic entity which owns the establishment. An establishment may be single proprietorship, partnership, government corporation, stock corporation, non-stock corporation, and cooperative. 

Industrial Classification of an economic unit was 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 of an establishment 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  refers to the 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, 2015 was used for the 2015 ASPBI.

Methodology

Sampling Design

Selection of sample establishment for the 2015 ASPBI was done using stratified systematic sampling with 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 s^th industry domain was

where:

 s   = denotes the non-certainty employment strata in TE of less than 20

 Xsj = value of the j^th establishment in non-certainty employment stratum in TE of less than 20 in S^th industry domain

 j      =  1,2,3..., n_s establishments

 W_sj = weight of the j^th establishment in the non-certainty employment stratum of less than 20 in the s^th industry domain

 N_s  = total number of establishments in the non-certainty employment stratum in TE of less than 20 in the s^th industry domain

n_s  = number of sample establishments in the non-certainty employment stratum in TE of less than 20 in s^th domain

b. Certainty Stratum

    The total of a characteristic for the certainty employment stratum in the C^th industry domain was

where:

 c   = denotes the certainty employment strata in TE of less than 20 in the c^th industry

 x_cj = value of the j^th establishment in the certainty employment strata in TE of less than 20 in the c^th industry domain

 j      = 1,2,3,..., m_c establishments 

 m_c  = number of establishments in the certainty employment strata in TE of less than 20 in the c^th 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 characteristicfor 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.

Estimation Procedure 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 A,C,E,F,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 an industry domain in each region 

where:

      s = denotes the non-certainty employment strata in TE of 20 to 49 and TE 50 TO 99        

      p = 1, 2,..., 18 regions (geographic domains)        

   X_spj = value of the j^thestablishment in the non-certainty employment strata with TE of 20 to 49 and TE 50 to 99 for an industry domain in each region  

       j = 1,2,3,..., n_sp establishments                                                 

  W_spj = weight of the j^th establishment in the non-certainty employment strata with TE of 20 to 49 and TE 50 to 99 for an industry domain in each region                                                                                                                                                                                      

   N_sp = total number of establishments in the non-certainty employment strata in TE of 20 and over for an industry domain in each region

    n_sp = 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 (Establishments under the following: Section B and D, ICT core industries, BPM industries, GOCC's and with TE 100 and over)

       The estimate of the total of a characteristic for the certainty employment stratum in an industry domain in each region

where:

       c = denotes the certainty employment strata in TE of 20 and over        

       p = 1,2,...18 regions (geographic domains)

   X_cpj = value of the j^thestablishment in the non-certainty employment strata in TE of 20 and over for an industry domain in each region 

       j = 1,2,3,..., m_cp establishments                                                 

  m_cp = number of establishments in the certainty employment strata in TE of 20 and over in an industry domain within 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 region (geopraphic domain) was obtained by aggregating the estimated for all employment strata  (non-certainty and certainty) in the same industry domain,

 

where dp denotes the industry domains in each region

National level estimate of the the characteristic by industry domain were obtained by aggregating separately the estimates  for  the particular industry domain from all the regions,

 

Weight Adjusment Factor for Non-Response

To account for non-response in the non-certainty strata, the adjusment factors, and (n/n') was multipled with the sampling weight (W) of each of the sampling unit. The sampling weight which is defined as N/n was recomputed as

Thus, the adjusted weight (W'_spj) for the non-certainty employment stratum for the industry domain with TE 20-99 was

Where:

 N_sp = total number of establishments in the non-certainty employment stratum with TE 20-99 for the industry domain within each geographic domain (region)

 n'_sp = number of responding establishments in the non-certainty employment stratum with TE of 20-99 for the industry domain within each geographic domain (region)

Response Rate

Response rate for all Human Health and Social Work Activities sector was 92.9 percent (715 out of 770 establishments). This included receipts of "good" questionnaires, partially accomplished questionnaires, reports of closed, moved out or out of scope establishments.

Of the total responses, 27 establishments responded online.

Reports of the remaining non-reporting establishments were taken from other available administrative data sources and financial statements from Securities and Exchange Commission (SEC). However, there were establishments which were found to be duplicates, out-of-scope and out of business in 2015.

Limitation of Data

Only the formal sector was covered in the survey.

Concepts and Definitions of Terms

Establishment  is as 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.

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, 2015.

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 is the sum of 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. Valuation is at producer prices (ex-establishment) net of discounts and allowances, including duties and taxes but excluding subsidies.

E-commerce refers to the selling of products or services over electronic systems such as Internet Protocol-based networks and other computer networks. Electronic Data Interchange (EDI) network, or other on-line system. Excluded are orders received from telephone, facsimile and e-mails.

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 the sum of total income (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 inventory. Intermediate input is equal to the sum of the following expense items: materials and supplies purchased; fuels, lubricants, oils and greases purchased; electricity purchased, water purchased; industrial services done by others; non-industrial services done by others (less rent expense for land); goods purchased for resale; research and development expense; environmental protection expense; royalty fee; franchise fee; and other expense.