Hospital activities industry leads in terms of number of establishments
Preliminary results of the 2016 Annual Survey of Philippine Business and Industry (ASPBI) showed that a total of 1,068 establishments with total employment (TE) of 20 and over were engaged in Human Health and Social Work Activities.
Among industry groups, hospital activities registered the highest number of establishments, with 696 establishments or 65.2 percent of the total. Medical and dental practice activities came in next with 262 establishments or 24.5 percent. Other social work activities without accommodation, n.e.c. ranked third with 49 establishments or 4.6 percent. Figure 1 shows the percentage distribution of establishments of the sector with TE of 20 and over by industry group.
At the regional level, National Capital Region (NCR) accounted for the most number of establishments for the sector with 317 or 29.7 percent of the total. CALABARZON and Central Luzon placed far second and third with 170 establishments (16.0%) and 98 establishments (9.2%), respectively.
Hospital activities industry employs the highest number of workers
Employment in 2016 reached a total of 140,252 workers. Of this, 139,584 or 99.5 percent were paid employees and the remaining were working owners and unpaid workers.
Hospital activities recorded the largest share in total employment with 120,409 or 85.9 percent. Medical and dental practice activities followed, providing jobs to 12,677 workers (9.0%). Other social work activities without accommodation, n.e.c. ranked third with 4,453 workers or 3.2 percent. Figure 2 shows the distribution of employment of the sector by industry group.
At the regional level, NCR emerged as the top employer which generated jobs to 45,012 workers or 32.1 percent, followed by CALABARZON with 22,028 workers (15.7%). Ranked far third was Central Luzon with 11,196 workers, equivalent to only 8.0 percent of the total employment of the sector.
Meanwhile, the sector recorded a national average of 131 workers per establishment. Among industries, hospital activities posted the largest average of 173 workers per establishment. This was followed by other social work activities without accommodation, n.e.c. with 91 workers per establishment while the rest of the industry groups ranges from 37 to 48 workers per establishments.
Other human health industry employees are the highest paid
The sector paid a total compensation of PHP31.5 billion in 2016, indicating an average annual compensation of PHP225,710 per employee.
At the industry groups level, establishments engaged in hospital activities spent the highest compensation of PHP26.9 billion or 85.3 percent of the total. Medical and dental practice activities followed with PHP2.8 billion (8.7%). Other social work activities without accommodation, n.e.c. ranked third with PHP1.2 billion (3.8%).
Other human health activities paid the highest average annual compensation of PHP494,719 per employee. Social work activities with accommodation for the elderly and disabled followed with PHP224,184 per employee. On the other hand, residential nursing care facilities had the least average annual compensation of PHP104,706 per employee. Figure 3 shows the average annual compensation of the top five industries of the sector.
At the regional level, two regions reported an average annual compensation higher than the national average, these are: CAR with PHP349,987 per employee and NCR with PHP322,381 per employee.
Hospital activities industry contributes the biggest share in income and expense
Income generated by the sector for establishments with TE of 20 and over reached PHP150.7 billion in 2016.
Hospital activities contributed the highest income amounting to PHP125.3 billion or 83.2 percent of the total income. Next largest income generating industry was medical and dental practice activities with PHP12.3 billion or 8.2 percent. Completing the top three highest income generating industries of the sector in 2016 was other social work activities without accommodation, n.e.c., with PHP10.4 billion or 6.9 percent of the total.
The top three regions in terms of income generation comprised 66.3 percent of the total income. NCR earned the highest income amounting to PHP67.1 billion (44.5%), followed by CALABARZON and Central Visayas with respective shares of PHP20.3 billion (13.5%) and PHP12.5 billion (8.3%).
On the other hand, total expense generated by the sector amounted to PHP129.7 billion. Hospital activities incurred the highest expense of PHP107.0 billion (82.5%). This was followed by medical and dental practice activities and other social work activities without accommodation, n.e.c. with total expense of PHP10.8 billion (8.4%) and PHP9.9 billion (7.6%), respectively. Figure 4 displays the income generated and expense incurred by the sector by industry group in 2016.
Across regions, NCR emerged as the top spender amounting to PHP58.7 billion (45.2%), followed by CALABARZON and Central Visayas with PHP17.4 billion (13.4%) and PHP10.8 billion (8.3%), respectively.
Income per expense ratio stands at 1.16; other human health industry generates the highest returns
The income generated per peso expense for the sector stood at 1.16. This means that for every peso spent in the operation of the business, PHP1.16 in income was generated.
By industry group, other human health activities recorded the highest returns of 1.54, surpassing the national ratio of 1.16. Other residential care activities, n.e.c. and hospital activities followed with a ratio of 1.44 and 1.17 respectively. The lowest income per expense ratio of 1.02 was recorded for social work activities without accommodation for the elderly and disabled.
Hospital activities industry accounts for the highest total value added
Value added for the sector was estimated at PHP70.1 billion in 2016.
Among industry groups, hospital activities posted the highest value added amounting to PHP56.9 billion or 81.2 percent of the total. This was followed by other social work activities without accommodation, n.e.c. with PHP6.8 billion (9.6%) and medical and dental practice activities with almost PHP5.0 billion (7.1%).
At the regional level, more than 40 percent of the total value added was generated by NCR amounting to PHP32.4 billion (46.2%), CALABARZON came in second with PHP9.7 billion (13.8%) and Central Visayas ranked third with PHP5.3 billion (7.5%). Meanwhile, nine of the regions recorded a value added of more than PHP1 billion.
Other social work activities without accommodation, n.e.c. industry posts the highest labor productivity
Labor productivity, defined as value added per total employment, was estimated at PHP499.6 thousand per worker for the sector in 2016.
By industry group, other social work activities without accommodation, n.e.c., emerged as the most labor productive with labor productivity worth PHP1,517.2 thousand per worker. Another industry that led in terms of labor productivity and exceeded the national average was other human health activities with PHP1,393.4 thousand per worker.
Figure 5 displays the leading industries of the sector as to labor productivity in 2016.
NCR was the most productive region registering a ratio of PHP720.1 thousand per worker. Other regions which surpassed labor productivity at the national level were the following:
- Caraga with PHP691.2 thousand per worker,
- CAR with PHP598.3 thousand per worker,
- Negros Island Region with PHP523.8 thousand per worker, and
- Central Visayas with PHP506.1 thousand per worker.
Gross additions to tangible fixed assets totals PHP14.3 billion
Gross additions to tangible fixed assets acquired by the sector was valued at PHP14.3 billion in 2016.
Hospital activities acquired the highest gross additions to tangible fixed assets amounting to PHP13.5 billion or 94.3 percent of the total. On the other hand, social work activities without accommodation for the elderly and disabled contributed the least to total tangible fixed assets with value of PHP1.5 million. Residential nursing care facilities did not acquire any tangible assets for the year in review.
Across regions, three acquired more than PHP1.0 billion worth of additions to fixed assets in 2016 and these were the following:
- NCR with PHP7.5 billion,
- CALABARZON with PHP1.6 billion, and
- Central Visayas PHP1.5 billion.
Total change in inventories reaches to PHP1.8 billion
Change in inventories (defined as ending less beginning inventory) for the sector amounted to PHP1.8 billion in 2016. Almost 93.0 percent of the total change in inventory was accounted for hospital activities with PHP1.7 billion.
Region-wise, five regions generated more than PHP100.0 million worth of inventory in 2016 and these were the following:
- NCR with PHP650.0 million,
- CALABARZON with PHP246.3 million,
- MIMAROPA with PHP150.7 million,
- Zamboanga Peninsula with PHP125.1 million, and
- Central Visayas with PHP102.7 million.
Total subsidy received from the government amounts to PHP102.6 million
Subsidy granted by the government to support the business operations of the sector for establishments with TE 20 and over in 2016 amounted to PHP 102.6 million.
Among industry groups, hospital activities received the bulk of the subsidy of the sector worth PHP72.9 million or 71.1 percent of the total.
Similarly, CALABARZON led other regions in terms of subsidy received from the government amounting to PHP89.4 million or 87.2 percent of the total.
This Special Release presents the preliminary results of the 2016 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 2016 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 2016.
The survey was conducted nationwide in 2017 with the year 2016 as the reference period of data, except for employment where the reference period is November 15, 2016.
Establishment Data Management System (EDMS) was still utilized in the decentralized processing of 2016 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 2016 ASPBI is authorized under Republic Act 10625, known as the Philippine Statistical Act of 2013, which reorganizing and strengthening of the Philippine Statistical System (PSS), its agencies and instrumentalities.
Scope and Coverage
The 2016 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 2016 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 2016 ASPBI was extracted from the 2016 List of Establishments (LE). The estimated number of establishments in operation in the country in 2016 totaled to 902,213. About 294,494 establishments (32.6% of the total establishments) belong to the formal sector of which 255,403 (86.7%) 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 2016 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.
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 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, 2016 was used for the 2016 ASPBI.
Selection of sample establishment for the 2016 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 97.3 (609 out of 626 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 2016.
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, 2016.
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 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.
See more at the Annual Survey of Philippine Business and Industry (ASPBI) page.