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     FrontPage Edition: Mon 7 January 2008

 Key Survey Findings on Health Services 2006



Health Services

In 2006, the health services industry comprised about 3,600 establishments. The industry employed some 54,000 workers which represented an average employment size of 15 workers per establishment.
Total operating receipts in the health services industry increased by 8.9 per cent in 2006, from $5,784 million in 2005 to $6,298 million in 2006. On a per establishment basis, operating receipts rose by 5.5 per cent to $1.7 million in 2006.
Total operating expenditure incurred was $5,682 million in 2006, 8.3 per cent higher compared with the previous year. Correspondingly, on a per establishment basis, operating expenditure increased by 4.8 per cent to $1.6 million in 2006.
Total operating surplus increased from $873 million in 2005 to $918 million in 2006, a growth of 5.1 per cent. Operating surplus per establishment increased by 1.8 per cent from $249,900 in 2005 to $254,400 in 2006.
Total value added recorded by the health services industry was $3,624 million in 2006, an increase of 7.8 per cent over 2005. On a per establishment basis, value added increased by 4.4 per cent to $1.0 million in 2006.
Western clinics[1] represented a significant 62.2 per cent of the total establishments in the health services industry. They employed 15,600 workers, accounting for 28.9 per cent of the total workers in the health industry (Chart 1). Hospitals, in spite of their small number, were the largest employer. They engaged 50.2 per cent of total health services’ workforce in 2006, or an average of 1,360 workers per establishment.

In terms of operating receipts and value added, hospitals’ share was also the largest. They accounted for 47.6 per cent and 46.2 per cent of the respective industry totals in 2006 (Chart 2). Western clinics constituted another important group in the health services industry, contributing 35.9 per cent and 36.5 per cent of total operating receipts and total value added respectively.

Remuneration was the top business cost item, followed by purchases of goods & materials for all health services groups in 2006 (Table 1). Together, these two items accounted for a substantial 58-72 per cent of the respective group’s total operating expenditure. Rental cost on offices, shops & other premises was the third largest business cost item for western clinics, non-western clinics and dental clinics. For hospitals and other medical services, depreciation cost ranked third.

Profitability Ratio of overall health services was 14.5 per cent in 2006, lower than the 15.0 per cent registered in 2005. Within the industry, all the health services groups except dental clinics recorded lower profitability ratios (Chart 3). Dental clinics recorded a profitability ratio of 27.2 per cent in 2006, higher than the 22.7 per cent in 2005.

Earnings-Expenditure Ratio for overall health services was 16.4 per cent in 2006, slightly lower than the 16.9 per cent registered in the previous year. Dental clinics recorded the highest ratio at 36.0 per cent, followed by non-western clinics (30.4 per cent) and western clinics (30.1 per cent) (Chart 4).

Average Annual Remuneration per Employee was $51,000 for employees working in the health services industry in 2006. Employees in western clinics received the highest average remuneration of $53,700 (Table 2).

Value Added per Worker for overall health services was $67,000 in 2006, an increase of 3.6 per cent compared with 2005. Within the industry, western clinics continued to record the highest average value added of $84,700 in 2006 (Chart 5). On the other hand, non-western clinics’ value added per worker was the lowest at $24,900.

Firms with less than 10 workers formed the majority (88.1 per cent) in the health services industry in 2006 (Table 3). However, firms with 100 workers and above, which constituted only 1.1 per cent, contributed the largest share of 62.5 per cent of the industry’s total operating receipts.


1 Includes specialised medical services.

Source: Media Release 7 Jan 2008

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