Hospital industry records the highest number of establishments
The total number of establishments with total employment (TE) of 20 and over in the Human Health and Social Work Activities sector was estimated at 997 based from the preliminary results of the 2015 Annual Survey of Philippine Business and Industry (ASPBI).
Among industry groups, majority of the establishments were engaged in hospital activities with 663 establishments or 66.5 percent of the total. Medical and dental practice activities came next with 233 establishments or 23.4 percent while other social work activities without accommodation, n.e.c. ranked third with 48 establishments or 4.8 percent. Figure 1 shows the percentage distribution of establishments of the sector by industry group.
At the regional level, National Capital Region (NCR) accounted for the most number of establishments for the sector with 297 or 29.8 percent of the total. This was followed by establishments located in CALABARZON with 159 or 16.0 percent and Central Luzon with 93 (9.3%).
Hospital industry employs the highest workers
Total employment of the sector for TE 20 and over reached 137,482 workers in 2015. Of the total employment, 136,410 or 99.2 percent were paid employees and the remaining 1,072 or 0.8 percent were working owners and unpaid workers.
Across industries, hospital activities recorded the largest share in total employment with 112,029 or 81.5 percent. This was followed by medical and dental practice activities, providing jobs to 18,256 workers (13.3%) and other social work activities without accommodation, n.e.c. with 4,609 workers or 3.4 percent. Figure 2 shows the distribution of employment of the sector by industry group.
Regionwise, NCR emerged as the top employer with 45,851 workers or 33.4 percent, followed by CALABARZON with 23,950 workers (17.4%). Ranked third was Central Luzon with 11,110 workers, equivalent to only 8.1 percent of the total employees of the sector.
The sector recorded a national average of 138 workers per establishment. Among industries hospital activities posted the largest average of 169 workers per establishment. This was followed by other social work activities without accommodation, n.e.c. with 96 workers per establishment and medical and dental practice activities, with 78 workers per establishment.
Other human health industry employees are the highest paid
The sector paid a total compensation of PHP29.8 billion in 2015, indicating an average annual compensation of PHP218,774 per employee.
At the industry level, other human health activities employees were paid the highest average annual compensation of PHP314,061. Employees of medical and dental practice activities received the second highest average annual compensation of PHP304,124. Other social work activities without accommodation, n.e.c. ranked third with an average annual compensation of PHP244,829 per employee. Figure 3 shows the average annual compensation of the top five industries of the sector.
Among regions, NCR paid the highest average annual compensation of PHP308,816 per employee. CALABARZON and Central Visayas followed, with an average annual compensation of PHP206,247 and PHP204,497 per employee, respectively.
Hospital industry emerges as top earner and spender
Income generated by the sector for establishments with TE of 20 and over reached PHP146.3 billion in 2015.
Hospital activities industry contributed the highest income of PHP107.2 billion or 73.2 percent of the total income. Next largest income generating industry was medical and dental practice activities industry with PHP24.8 billion or 16.9 percent. Completing the top three highest income generating industries of the sector in 2015 was other social work activities without accommodation, n.e.c., with PHP12.2 billion or 8.4 percent of the total.
Regionwise, NCR generated the highest income of PHP68.5 billion (46.8%). This was followed by CALABARZON with PHP24.0 billion or 16.4 percent of the total income for the sector. Central Visayas generated the third highest income of PHP10.4 billion or 7.1 percent.
In 2015, total expense incurred by the sector for establishments with TE 20 and over amounted to PHP122.8 billion.
Industrywise, hospital activities spent the highest with PHP92.7 billion (75.5%). Medical and dental practice activities was second highest spender at PHP17.5 billion (14.2%). Other social work activities without accommodation, n.e.c., came in third with total expense of PHP11.0 billion (8.9%). Figure 4 shows the income generated and expense incurred of the sector by industry group in 2015.
Across regions, NCR was the top spender of PHP58.2 billion (47.4%), followed by CALABARZON and Central Visayas with PHP17.9 billion (14.6%) and PHP9.3 billion (7.5%), respectively.
Income per expense ratio stands at 1.19; other human health industry generates the highest returns
The income generated per peso expense of the sector stood at 1.19. This means that for every peso spent in the operation of the business, PHP1.19 income was generated.
By industry groups, other human health activities recorded the highest returns with 1.52, followed by medical and dental practice activities with 1.42 income per peso expense.
On third spot was residential care activities for mental retardation, mental health and substance abuse with 1.18. The lowest ratio was recorded by residential care activities for the elderly and disabled with 1.02 income per expense.
Hospital industry accounts for more than half of the total value added
Value added for the sector was estimated at about PHP67.4 billion in 2015.
Among industries, hospital activities posted the highest value added with PHP46.2 billion accounting for more than half or 68.5 percent of the total value added. This was followed by medical and dental practice activities and other social work activities without accommodation, n.e.c. with PHP13.7 billion (20.4%) and PHP6.4 billion (9.4%), respectively.
Across regions, NCR recorded the highest value added of PHP32.4 billion or 48.0 percent of the total.
Other social work activities without accommodation industry posts the highest productivity
Labor productivity, defined as value added per worker, was estimated at PHP490.3 thousand per worker for the sector in 2015.
Other social work activities without accommodation, n.e.c. was the most productive among industries with a value worth PHP1,381.0 thousand per worker. Other top industries that led in terms of labor productivity and exceeding the national average were other human health activities with PHP924.0 thousand per worker and medical and dental practice activities with PHP752.0 thousand per worker. Figure 5 presents the leading industries of the sector as to labor productivity in 2015.
At the regional level, NCR garnered the highest labor productivity of PHP705.9 thousand per worker. CALABARZON and Eastern Visayas followed with respective labor productivity of PHP554.7 and PHP426.8 thousand per worker.
Gross additions to tangible fixed assets totals PHP11.1 billion
Gross additions to tangible fixed assets acquired by the sector was valued at PHP11.1 billion in 2015.
Among industry groups, hospital activities acquired the highest gross additions to tangible fixed assets at PHP9.5 billion or 85.8 percent of the total. This was followed by medical and dental practice activities with PHP841.0 million or 8.8 percent worth of gross additions to fixed assets.
By geographic areas, three regions acquired more than PHP1.0 billion worth of gross additions to fixed assets in 2015 and these were the following:
- NCR with PHP4.1 billion
- Central Visayas with PHP2.2
- CALABARZON with PHP1.4
Total change in inventories reaches to PHP860.5 million in 2015
Change in inventories is defined as the value of ending less beginning inventory. The total change in inventory of the sector amounted to PHP860.5 million in 2015. Hospital activities industry posted the highest change in inventory of PHP932.2 million.
By region, Western Visayas recorded the highest change in inventory of PHP473.9 million, followed by NCR and Central Luzon with PHP132.5 million and PHP131.4 million, respectively.
Total subsidies received amounts to PHP 15.1 million in 2015
Subsidies granted by the government to support the business operations of the sector for establishments with TE 20 and over in 2015 amounted to PHP15.1 million.
Among nine industry groups of the sector, only three received subsidies in 2015. Hospital activities received bulk of the subsidies worth PHP10.3 million or 68.1 percent of the total.
Among regions, only three received subsidies in 2015. CALABARZON led the regions with PHP14.2 million worth of subsidies accounting for 93.9 percent of the total.
This Special Release presents the preliminary results of the 2015 Annual Survey of Philippine Business and Industry (ASPBI) for Human Health and Social Work Activities sector for establishments with total employment of 20 and over.
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 by industry group or 3-digit 2009 Philippine Standard Industrial Classification (PSIC) at the national and regional level..
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.
Selection of sample establishment for the 2015 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, the 18 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 TE of 20 and over for an industry domain in each region
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)
Xspj = value of the jthestablishment 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,..., nsp establishments
Wspj = weight of the jth 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
Nsp = total number of establishments in the non-certainty employment strata in TE of 20 to 49 and TE 50 to 99 for an industry domain in each region
nsp = number of sample establishments in the non-certainty employment strata in TE of 20 to 49 and TE 50 to 99 for an industry domain in each region
b. Certainty Stratum (Establishments under the following: Section B, D and J, ICT core industries, BPM industries, GOCC's and with TE 100 and over)
c = denotes the certainty employment strata in TE of 20 and over
p = 1,2,...18 regions (geographic domains)
Xcpj = value of the jthestablishment in the non-certainty employment strata in TE of 20 and over 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'spj) for the non-certainty employment stratum for the industry domain with TE 20-99 was
Nsp = 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 for Human Health Activities sector for establishments with TE of 20 and over was 92.8 percent (538 out of 580 establishments). This included receipts of "good" questionnaires, partially accomplished questionnaires, reports of closed, moved out or out of scope establishments.
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 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.
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.
Intermediate expense are expenditures incurred in the production of goods such as materials and supplies used, fuels, lubricants, oils and greases used; electricity and water purchased, and industrial services done by others.
Value added is gross output less intermediate input. Gross output for Human Health and Social Work Activities sector is the sum of the 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 inventories. 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.
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.