TABLE A Comparative Summary Statistics for All Human Health and Social Work Establishments: Philippines, 2017and 2016

Medical and dental practice activities industry leads the sector in terms of number of establishments

The final results of the Annual Survey of Philippine Business and Industry (ASPBI) showed that a total of 6,663 establishments in the formal sector of the economy were engaged in human health and social work activities in 2017.  This reflects a decrease of 18.4 percent from the 8,170 establishments reported in 2016.

Among the industry groups, medical and dental practice activities led the sector with 4,774 establishments or 71.6 percent of the total. This was followed by hospital activities with 1,112 establishments (16.7%) and other social work activities without accomodation, n.e.c. with 421 establishments (6.3%).

Figure 1 shows  the percentage distribution of all human health and social work establishments by industry group in 2017.

Hospital activities industry generates highest employment

The total employment of the sector reached 182,294 workers in 2017. This reflects an increase of1.9 percent from the 178,905 workers recorded in 2016. Of the total workforce,179,514 workers or 98.5 percent were paid employees while the remaining were working owners and unpaid workers.

By industry group, hospital activities employed the highest number of workers of 128,562 or 70.5 percent of the total employment. Medical and dental practice activities, and other social work activities without accommodation, n.e.c. followed with 42,671 workers (23.4%) and 5,688 workers (3.1%), respectively.

Figure 2 shows the distribution of employment of all human health and social work establishments by industry group in 2017.

The sector recorded an average of 27 workers per establishment with hospital activities posting the highest average of 116 workers per establishment. This was followed by social work activities without accommodation for the elderly and disabled with 17 workers per establishment.

Social work activities without accommodation for the elderly and disabled industry pays the highest average annual compensation

The sector paid a total compensation of PHP38.9 billion to its employees in 2017. This translates to an average annual compensation of PHP216.6 thousand per paid employee, higher by 0.9 percent from the PHP214.7 thousand average annual compensation in 2016.

By industry group, social work activities without accommodation for the elderly and disabled  paid the highest average annual compensation of PHP315.3 thousand per employee. Other social work activities without accommodation, n.e.c. followed with an average annual pay of PHP252.4 thousand per employee.On the other hand, residential care activities for the elderly and disabled paid the lowest average annual compensation of PHP118.3 thousand per employee.

Figure 3 displays the average annual compensation of paid employees for the top five industries for all establishments of the sector by industry group in 2017.

Hospital activities industry contributes the highest share to total income and expense

The total income generated by the sector reached PHP194.9 billion in 2017, higher by 5.5 percent from the total income of PHP184.7 billion generated in 2016. Hospital activities contributed the highest share to total income, amounting to PHP138.9 billion or 71.3 percent.

On the other hand, total expense incurred by the sector amounted to PHP165.8 billion, an increase of 4.5 percent compared with the PHP158.7 billion in 2016. Among the industries, hospital activities incurred the highest expense of PHP117.0 billion (70.5%). This was followed by medical and dental practice activities, and other social work activities without accommodation, n.e.c. with PHP32.9 billion (19.8%) and PHP12.5 billion (7.6%), respectively.

The sector generated an income per peso expense of 1.18 in 2017. This means that for every peso spent in the business operations of the sector, an income of PHP1.18 was generated. Compared with the income per peso expense of 1.16 in 2016, the income per peso expense  increased by 1.7 percent in 2017. By industry, other residential care activities, n.e.c. generated the highest income per peso expense of 1.42.

Hospital activities industry accounts for more than half of the total value added

The total value added generated by the sector was estimated at PHP86.6 billion in 2017. This represents an increase of 4.3 percent from the PHP83.1 billion total value added recorded in 2016.

Among the industries, hospital activities posted the highest value added amounting to PHP64.0 billion or 73.9 percent of the total.

Labor productivity,defined as the ratio of value added to total employment, was estimated at PHP475.3 thousand per worker in 2017.

By industry group, other social work activities without accommodation, n.e.c. emerged as the most labor productive industry with PHP858.8 thousand per worker. This was followed by hospital activities with labor productivity of PHP497.8 thousand per worker.

Figure 4 shows the labor productivity for the five most labor productive industries for all establishments of the sectorby industry group in 2017.

Gross additions to tangible fixed assets records PHP12.6 billion

The gross additions to tangible fixed assets (capital expenditures less sale of fixed assets) acquired by all human health and social work activities establishments was valued at PHP12.6 billion in 2017, lower by 15.7 percent from the PHP15.0 billion recorded in 2016.

Among the industries, hospital activities acquired the highest gross additions to tangible fixed assets of PHP11.8 billion (93.3%).  Medical and dental practice activities ranked second with PHP723.7 million (5.7%). Other social work activities without accommodation, n.e.c. placed third with PHP78.5 million (0.6%).

Total change in inventories reaches PHP2.2 billion in 2017

Change in inventories, defined as the value of ending less beginning inventory, amounted to PHP2.2 billion in 2017, a decrease of 4.1 percent from the PHP2.3 billion change in inventories in 2016.

Hospital activities had the highest change in inventories of PHP2.0 billion (92.3%). Medical and dental practice activities followed far behind with PHP149.0 million (6.8%). Completing the top three industries was other social work activities without accommodation, n.e.c. with recorded change in inventories of  PHP9.6 million (0.4%).

Total subsidies received amounts to PHP132.9 million

Total subsidies granted by the government to support the business operations of the sector amounted to PHP132.9 million in 2017, an increase of 17.1 percent compared with the PHP113.5 million subsidies in 2016.

Hospital activities received more than half of the total subsidies granted by the government  worth PHP79.5 million (59.8%).  Other social work activities without accommodation, n.e.c. followed, receiving PHP45.4 million (34.1%) subsidy.

TECHNICAL NOTES

Introduction

This Special Release presents the final results of the 2017 Annual Survey of Philippine Business and Industry (ASPBI) for all Human Health and Social Work Activities establishments(Sector Q).

The 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 2017.

The survey was conducted nationwide in 2018 with the year 2017 as the reference period of data, except for employment which is as of 15 November 2017.

Establishment Data Management System (EDMS) was utilized in the decentralized processing of 2017 ASPBI questionnaires in the provinces as well as the online accomplishment of questionnaire through the PSA website.

Data are presented by industry sub-group or 3-digit level of the 2009 Philippine Standard Industrial Classification (PSIC) at the national level.

Legal Authority

The conduct of the 2017 ASPBI is authorized under Republic Act 10625 known as the Philippine Statistical Act of 2013, which mandates reorganizing and strengthening of the Philippine Statistical System (PSS), its agencies and instrumentalities.

Scope and Coverage

The 2017 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 partnership
•  Cooperatives and foundations
•  Single proprietorship with employment of 10 and over
•  Single proprietorships with branches

Hence, the 2017 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 2017 ASPBI was extracted from the 2017 List of Establishments (LE). The estimated number of establishments in operation in the country in 2017 totaled to 917,582. About 228,112 establishments (24.9%) of the total establishments comprise the establishments frame are within the scope and coverage of the 2017 ASPBI.

Unit of Enumeration

The unit of enumeration for the 2017 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 economic activity at a single fixed location.

Taxonomy 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 PSA Resolution No. 01 Series of 2017-158 signed on 14 February 2017 was utilized to classify economic units according to their economic activities.

Size of an establishmentis determined by its TE as of a specific date. 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 31 December 2017 was used for the 2017 ASPBI.

Sampling Design

The 2017 ASPBI uses a stratified systematic sampling with 5-digit PSIC serving as industry strata, and employment size as the second stratification variable.

Estimation procedure 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

where:

          s     denotes the non-certainty employment strata in TE of less than 20
          X_sj = 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..., ns establishments
          W_sj = weight of the j^thestablishment 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 (X_c)  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 jth 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 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, the 17 administrative regions serve as the geographic domains while the 5-digit level of the 2009 PSIC serves as the industry domains.

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)
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 an industry domain in each region,

where:

          s    denotes the non-certainty employment strata in TE of 20 and over
          p = 1, 2,..., 18  regions (geographic domains)
         x_spj  =  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,…, nspestablishments
        W_spj  =  weight of the j^thestablishment in the non-certainty employment strata in TE of 20 and over 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, GOCCs 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^th establishment in the certainty employment strata in TE of 20 and over for an industry domain within 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 (geographic domain) was obtained by aggregating the estimates for all employment strata (non-certainty and certainty) in the same industry domain,

     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 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’_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 20-99 for the industry domain within each geographic domain (region)

Response Rate

Response rate for all Human Health and Social Work Activites establishments was 85.4 percent(723 out of 847 establishments). This included receipts of "good" questionnaires, partially accomplished questionnaires, reports of closed, moved out or out of scope establishments.

Of the total responses, 31 establishments responded online.

Reports of the remaining non-reporting establishments were taken from the financial statements from the Securities and Exchange Commission (SEC) and other available data sources. Reports of establishments that were found to be duplicate of another establishment, out-of-scope and out of business in 2017 were not included in the generation of statistical tables.

Limitation of Data

The survey covered all economic activities of the Human Health and Social Work Activities sector except public medical, dental and other health services.

Concepts and Definitions of Terms

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.

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.

E-commerce is 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.

Establishment is an economic unit under a single ownership and control, i. e. under a single entity, engaged in one or predominantly one kind of economic activity at a single fixed location.

Expense is the 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.

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

Income or Revenue is the 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.

Inventories are 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.

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.

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.

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.

Value added is gross output less intermediate input. Gross output for Human Health and Social Work Activities sectoris the sum of income from service rendered, real estate sales less real estate sold, commissions and fees earned, income from renting and leasing services of real estate properties, income from non-industrial service done for others (less rent income from land), sales of goods (less cost of goods sold), grants and donations, other income, capital expenditures of fixed assets produced on own account and change in inventories.  Intermediate input is 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; payouts and other expense.

See more at the Annual Survey of Philippine Business and Industry (ASPBI) page.