Hospital activities industry records the highest number of establishments
From the preliminary results of the 2014 Annual Survey of Philippine Business and Industry, the Philippines had a total of 995 establishments with TE of 20 and over engaged in Human health and social work activities sector. Hospital activities topped the sector with 660 establishments or 66.3 percent. This was followed by medical and dental practice activities and other social work activities without accommodation, n.e.c. with 230 establishments or 23.1 percent and 49 establishments or 4.9 percent, respectively. On the other hand, residential nursing care facilities had the least number with 3 establishments or 0.3 percent. Figure 1 shows the percent distribution of establishment by industry group in 2014.
On the regional level, most of the establishments were located in NCR with 302 establishments or 30.4 percent. CALABARZON came next in with 150 establishments or 15.1 percent while Central Luzon ranked third with 90 establishments or 9.0 percent.
Hospital activities industry generates the highest number of workers
Employment reached a total of 127,975 workers. Of this, 98.9 percent (126,589) of the total were paid employees and the rest were working owners or unpaid workers.
The hospital activities industry had the most number of employees with 108,751 or 85.0 percent, followed by medical and dental practice activities with a total of 12,445 workers or 9.7 percent of the total employment. Figure 2 displays the distribution of employment by industry group.
Among regions, NCR having one-third of the number of establishments, employed the highest workers reaching 44,798 or 35.0 percent of the total. CALABARZON with 19,564 workers (15.3%) ranked second. Completing the top three regions with the most number of workers was Central Visayas with 10,071 workers (7.9%).
Establishments engaged in other social work activities without accommodation pays the highest average annual compensation
Total compensation paid by the sector amounted to PHP26.7 billion. Average annual compensation was estimated at PHP208.8 thousand per paid employee. Establishments engaged in other social work activities without accommodation paid the highest average annual compensation of PHP324.8 thousand per employee while those in residential nursing care facilities paid the lowest at an average of PHP64.5 thousand per employee. Distribution of average annual compensation per paid employee by industry group is shown in Figure 3.
At the regional level, CAR employees received the highest among the regions with an average annual compensation of PHP299.9 thousand followed by NCR with PHP299.5 thousand and Central Visayas with PHP193.8 thousand.
Hospital activities industry generates the biggest share in income and expense
The sector generated a total income of PHP130.7 billion. The hospital activities industry had the largest share of 77.3 percent in income or PHP101.1 billion. Medical and dental practice activities followed next with PHP16.1 billion or 12.3 percent. On the other hand, residential nursing care facilities had the least share of 0.03 percent or PHP40.9 million.
Total expense, including compensation, incurred in 2014 amounted to PHP113.6 billion. Being the major income generator, hospital activities industry also had the largest proportion in expense with PHP87.0 billion or 76.6 percent and medical and dental practice activities with PHP14.6 billion or 12.8 percent. Residential nursing care facilities incurred the lowest expense of PHP45.5 million or 0.04 percent. Figure 4 shows the income generated and expense incurred by the Human health and social work activities establishments by industry group in 2014.
At the regional level, almost half of the total expense was spent by NCR with PHP56.7 billion or 49.9 percent of the operating expense. This was distantly followed by CALABARZON and Central Visayas spending PHP14.0 or 12.3 percent and PHP8.3 or 7.3 percent, respectively.
Income per peso expense for the sector stands to 1.15
In 2014, the income per peso expense generated by the sector amounted to 1.15. Among industries, other human health activities recorded the highest and surpassed the national average with 1.72 income per peso expense. This was followed by establishments engaged in social work activities without accommodation for the elderly and disabled, with income per expense ratio of 1.21. Establishments engaged in residential nursing care facilities registered the least with 0.90 income per peso expense.
By region, establishments in Northern Mindanao registered the highest return at 1.27 income per peso expense. The establishments in Central Visayas came next with income per peso expense of 1.22 and Western Visayas with 1.21, respectively.
Hospital activities industry accounts for more than 80 percent of total value added
Value added was estimated at PHP55.8 billion. Among industries, the hospital activities industry contributed the biggest share of 81.8 percent to total value added amounting to PHP45.6 billion. Medical and dental practice activities came a far second with PHP5.5 billion or a share of 9.8 percent. On the other hand, residential nursing care facilities generated the least with PHP12.5 million or 0.02 percent.
On the regional level, more than half of the total value added was accounted for by NCR amounting to PHP28.4 billion.
Residential care for the elderly and disabled and other residential care activities posts the highest labor productivity
Value added per employee, a measure of labor productivity, was estimated at PHP435.9 thousand per worker for the sector. The highest labor productivity was recorded by combined industries of residential care activities for the elderly and disabled and other residential care activities with PHP1.5 million per worker. Industry of other human health activities placed in second with PHP920.2 thousand per worker. Social work activities without accommodation for the elderly and disabled came third with PHP604.1 thousand per worker. Figure 5 shows the value added per worker by industry group for the Human health and social work activities sector.
Gross addition to tangible fixed assets reaches to PHP11.6 billion
Gross addition to tangible fixed assets, capital expenditures less sale of fixed assets, acquired by the sector reached PHP11.6 billion in 2014. The largest share of 74.0 percent to the gross addition to tangible fixed assets was acquired by the hospital activities industry with PHP 8.6 billion.
Among regions, NCR recorded the highest additions to fixed assets with PHP4.0 billion or 34.6 percent of the total while CAR had the least share of 0.1 percent with PHP15.1 million.
Total change in inventory registers at PHP234.0 million
Change in inventories for the sector, defined as the value of ending inventory less the beginning, amounted to PHP234.0 million. Among industries, hospital activities industry recorded the highest with PHP308.6 million, followed by social work activities without accommodation for the elderly and disabled with PHP987.0 thousand and residential care activities for mental retardation, mental health and substance with PHP448.0 thousand.
No receipts from subsidies and sales from e-commerce in 2014
The sector did not report any subsidies received from the government in 2014. At the same time, none of the establishments reported sales from e-commerce activities during the year.
This Special Release presents the preliminary results of the 2014 Annual Survey of Philippine Business and Industry (ASPBI) for the Human Health and Social Work Activities sector for establishments with total employment of 20 and over 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.
Establishment Data Management System (EDMS) was still utilized in the decentralized processing of 2014 ASPBI questionnaires in the province as well as the online accomplishment of questionnaire through the PSA website. .
Data are presented at the national, regional and industry group or 3-digit 2009 Philippine Standard Industrial Classification (PSIC).
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 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 an industry domain in each region
s = denotes the non-certainty employment strata in TE of 20 and over
p = 1,2,...17 regions (geographic domains)
Xspj = value of the jthestablishment in the non-certainty employment strata in TE of 20 and over in for an industry domain in each regionin each region
j = 1,2,3,..., nsp establishments
Wspj = weight of the jth establishment in 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
c = denotes the certainty employment strata in TE of 20 and over
p = 1,2,...17 regions (geographic domains)
Xcpj = value of the jthestablishment in the non-certainty employment strata in TE of 20 and over in for an industry domain in each region
j = 1,2,3,..., mcp establishments
mcp = 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'sj) for employment stratum in TE 1-9 or TE 10-19 was
Ns = total number of establishments in 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 Sth industry domain
For the non-certainty employment stratum for the selected industry domain with TE of 20-99, the adjusted weight (W'spj) was
Nsp = total number of establishments 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 of 20-99 for the selected industry domain within each geographic domain (region)
Field operations of the 2014 ASPBI were scheduled from April to July 2015.
Total response rate for Human Health and Social Work Activities sector with TE of 20 and over was 98.5 percent (573 out of 582 establishments). This included receipts of "good" questionnaires, partially accomplished questionnaires, reports of closed, moved out or out of scope establishments.
Of the total responses, nine 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.
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.
Intermediate cost rrefers to expenses incurred in the production of goods such as materials and supplies purchased, fuels purchased, electricity purchased 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 output for financial and insurance activities is the sum of the total income (less rent income from land, 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; industrial services done by others; non-industrial services done by others; goods purchased for resale; research and development expense; environmental protection expense; royalty fee; franchise fee and other expenses.
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.