1.
ECONOMIC ENVIRONMENT
The Philippines’ economic freedom score is 57.1, making its economy the 107th freest in the 2012
Index. Its score is 0.9 point higher than last year, with a significant improvement in business
freedom. The Philippines ranks 19th out of 41 countries in the Asia–Pacific region, and its
overall score are slightly below the world and regional averages.1
Despite the challenging global economic environment, the Philippine economy has been on a
steady path of economic expansion. The government has pursued a series of legislative reforms
to enhance the entrepreneurial environment and develop a stronger private sector to
generate broader-based job growth. Overall progress has been gradual, but regulatory
efficiency has been notably enhanced. The economy has expanded at an average annual rate
of close to 5 percent over the past five years.
Trade and Industry Secretary Domingo reported that committed investments with the Board
of Investments and the Philippine economic zones grew by 30% “from an already very large
base in 2010. From P500 billion in 2010, committed investments reached P650 billion in 2011,
a P150 billion jump in investment registrations last year.”2
Philippines GDP Annual Growth Rate
The chart indicated the Gross Domestic Product (GDP) in Philippines was increased by 3.7
percent in the fourth quarter of 2011 over the same quarter, previous year. Historically, from
2001 until 2011, Philippines' average annual GDP growth rate was 4.74 percent reaching an
historical high of 8.90 percent in June of 2010 and a record low of 0.50 percent in September
of 2009. Philippines are a newly industrialized country in the South eastern Asia. In addition
the Philippians economy relies on remittances as a source of foreign currency.
1 http://www.heritage.org/index/country/philippines,March 2012
2 http://manilareviews.com/2012/03/philippines-economic-briefing-march-2012.html#ixzz1rcAIiQ7h

2.
GDP growth decomposition reveals that the dismal performance of goods exports pulled down
the full year 2011 GDP growth rate by 2.2 percentage points. Public construction and
government consumption also had an impact.
Agriculture, industry and services sectors contributed to the full year growth. Government
spending has increased significantly, with the public construction sector growing by almost 50
percent in the fourth quarter of 2011 over the same period in 2010, while government
consumption expenditure and public administration and defense figures have been showing
substantial increases since the second or the third quarter.3
Inflation rates of the Philippines
YEAR Inflation rate
2009 3.2
2010 3.8
2011 4.2
The table above shows the average inflation rates for the years 2009-2011, last February 2012
inflation rate is 2.7 percent. Inflation rate refers to a general rise in prices measured against a
standard level of purchasing power and it is a measure of inflation, or the rate of increase of a
price index such as the consumer price index. It is the percentage rate of change in price level
over time, usually one year. Inflation or the increase in the consumer prices could due to food
and fuel prices; there is definitely a trend of increasing price. The rate of decrease in the
purchasing power of money is approximately equal.
Population growth and spatial trends.4
The Philippines had an annual growth rate of 2.04%; population growth in the Philippines is
one of the highest in Asia. Despite long-standing high female education rates, population
growth rates have remained relatively high in the Philippines due to cultural and political
factors.
As of 2010, 63% of the populations were living in urban areas; this is expected to increase to
70% by 2015. The increasingly urban character of destitution increases the burden on the
health care system as problems of population pressure and environmental degradation,
combined with the urban lifestyle, put the urban poor under higher risk.
3
http://www.neda.gov.ph/econreports_dbs/NIA/DG_Statements/DG%20Press%20Statement_nia2011fy.pdf
4
(http://www.sws.org.ph/pr20100721.htm).WHO Country Cooperation Strategy for the Philippines 2011-2016.
http://www.quezoncity.gov.ph/index.php?option=com_content&view=article&id=234&Itemid=351

3.
Ageing Population
Based on the DOH5
, the population of 60 years or older was 3.7 million in 1995 or 5.4% of total
population in the Philippines. In the CY 2000 census, this has increased to about 4.8 million or
almost 6% (NSCB). At present there are 7M senior citizens (6.9% of the total population), 1.3M
of which are indigents. The trend is expected to increase in the share of senior citizens to the
total Philippine population of 7.8 percent, 9.6 percent, and 11.7 percent in 2015, 2020, and
2025, respectively (UN, 2008).
With the rise of the aging population is the increase in the demand for health services by the
elderly. A study done by Racelis et al (2003) on the share of health expenditure of Filipino
elderly on the National Health Account, the elderly are “relatively heavy consumers of
personal health care (22%) and relatively light consumers of public health care (5%).” From
out-of-pocket costs, the aged are heavy users of care provided by medical centers, hospitals,
non-hospital health facilities and traditional care facilities.
Determinants of Health
Many factors combine together to affect the health of individuals and communities. Whether
people are healthy or not, is determined by their circumstances and environment. To a large
extent, factors such as where we live, the state of our environment, genetics, our income and
education level, and our relationships with friends and family all have considerable impacts on
health, whereas the more commonly considered factors such as access and use of health care
services often have less of an impact.
The determinant of health includes:
 the social and economic environment,
 the physical environment, and
 the person’s individual characteristics and behaviors.
These determinants—or things that make people healthy or not—include the above factors,
and many others:
 Income and social status - higher income and social status are linked to better health.
The greater the gap between the richest and poorest people, the greater the
differences in health.
 Education – low education levels are linked with poor health, more stress and lower
self-confidence.
 Physical environment – safe water and clean air, healthy workplaces, safe houses,
communities and roads all contribute to good health. Employment and working
conditions – people in employment are healthier, particularly those who have more
control over their working conditions
 Social support networks – greater support from families, friends and communities is
linked to better health. Culture - customs and traditions, and the beliefs of the family
and community all affect health.
5
Health and well-being of older person - http://www.doh.gov.ph/content/health-and-well-being-older-persons

4.
 Genetics - inheritance plays a part in determining lifespan, healthiness and the
likelihood of developing certain illnesses. Personal behavior and coping skills –
balanced eating, keeping active, smoking, drinking, and how we deal with life’s stresses
and challenges all affect health.
 Health services - access and use of services that prevent and treat disease influences
health
 Gender - Men and women suffer from different types of diseases at different ages.
Health Risks
Survey data shows that most households go directly to hospitals for treatment of illnesses. With
the breakdown of referral networks due to devolution, tertiary level hospitals which are
designed to cater to more serious diseases are also accommodating cases that can be handled
by lower level facilities. This leads to tertiary hospitals requiring more financial resources to be
able to attend to all its patients6
.
From January 1 to August 18, 2012, leptospirosis cases reached a total of 2,471 with 129 deaths,
the report said. In the same period last year, the DOH recorded only 1,522 cases. According to
the surveillance report, most of the leptospirosis cases came from Northern Mindanao, Western
Visayas and NCR. In NCR, the cities of Manila, Quezon City and Caloocan City registered the
highest number of leptospirosis cases with 73, 43 and 24 cases respectively (Manila Bulletin
Articles, September 1, 2012)7
.
Dr. Tony Dans from UP-PGH said that 60% of case in lung cancer is caused by the air
pollution. Secretary Ona said that 80% of air pollution is coming from motor vehicles. Mr. Mike
Aragon also mentioned in the February 2012 Clean Air Summit that 60 – 80% of air pollution
are caused by 200 million motor vehicles in Metro Manila8
.
Cancer is now the third leading cause of death in the Philippines, claiming one death for every
two new cases within a year. Cancer is estimated to afflict 189 per 100,000 Filipinos. Statistics
show that cancer kills four Filipinos every hour or 103 every day. The incidence and mortality
rates of cancer in the Philippines has been increasing in the past three decades, and this trend
is expected to continue if organized and sustained specialized care and preventive measures
against cancer are not initiated (Manila Bulletin Articles9
, April 24, 2012).
Weather can also be an important and contributing factor in the outbreak and spread of
diseases. Changes in temperature can increase the incidence of colds and flu. Exposure to
intense sunlight and high temperatures during the dry season can cause heat stroke and skin
illnesses, while the onset of rains can result in the outbreak of dengue fever, typhoid fever, and
water-borne and other communicable diseases.
6
PIDS -How Are Government Hospitals Performing? A Study of Resource Management in DOH-retained Hospitals.
Discussion paper Series no. 2010-02
7
Leptospirosis cases increase by 62.35% - http://www.mb.com.ph/articles/371872/leptospirosis-cases-increase-by-6235
8
Air Pollution, unang sanhi ng lung cancer - http://www.doh.gov.ph/sites/default/files/091112-0002.pdf
9
State should lead cancer fight - http://mb.com.ph/articles/357920/state-should-lead-cancer-fight

5.
Quezon City Population
Largest city in metro Manila with a land area of 16,112.8 hectares (proclaimed by PD no. 940)
and biggest population (24% of the regional population)
More than half of Quezon City’s population found in district 2
One of the largest sources of manpower in the Philippines (2012 estimated), total populations
is 2,915,772 with an annual growth rate of 2.92%.
Distribution among the genders is 51:49, with 1.5M females to 1.4M males. It is a city dominated
by the youth, with more than 40% (1.17 million) of the population less than 20 years of age.
The senior population (60 years and older) is about 5% of the total. Women in their
reproductive years (15 to 49 years) are 891,983, which may contribute to the city’s average
annual population growth rate of 2.92% (higher than Metro Manila’s 2.11% and the Philippines’
2.04%).
Literacy Rate is 98.32% which is higher than the Philippines average rate (93.4%). Quezon City
is considered to have the largest school-age population (NSCB, 2010), 1.88M or 4.3% of the
Philippines total enrolled population.
It is the 2nd
most competitive City in the Philippines in the local survey conducted by Asian
Institute of Management in Businessman (2007). Largest Service economy: 58,133 registered
businesses engaged in wholesale and retail; 3rd
largest shopping center in the world, in terms of
leasable space (More than 28 shopping complexes).
The city’s employable population (aged 20 to 64) is about 1.672 million, the biggest that can
be found in any Philippine city. It represents 33.8% of Metro Manila’s aggregate labor force
and 4.3% of the country’s total labor force.
Economic Environment Assumptions
Based on the past year date, Philippine economic environment assumptions10
are: High and
sustained economic growth; continuous investment and development of our infrastructure;
Annual average real GDP growth (NEDA) will increase by 7% and inflation rate by 4% for the
period of 2011-2016; Goods and fuel price will continue to go up. Healthcare expenditures
annual growth rate is 6.7% (constant prices, 2000-2011); 8.9% (2010-2011). (NSCB)
Year 2011 2012 2013 2014
GDP Rate 4.2 4.5 4.8 5.2
Inflation Rate 3.7 3.8 4 4.2
Economic
10
http://www.neda.gov.ph/PDP/rm/pdprm2011-2016.pdf, page 30,
http://www.nscb.gov.ph/sna/2012/1st2012/2012npil.asp- Annual average real GDP growth increase by 7% (2011-2016)
63

6.
 The effect of foreign currency - Most of Hospital Equipment and parts is imported and
many of the modern medicine are imported. You have to pay extra for imported
medicine and the rising cost of equipment was affecting the hospitals.
 Economic Programs - Promoting of tourism in the Philippines include the medical
tourism, cheaper to hospitalize in the Philippines. Factor would increase patient.
Social/Cultural
 A growing consciousness of decease prevention - wellness and fitness program.
 The growing acceptance of the HMO concept, aid is in greater usage of hospital
services.
 Ageing Population changing their lifestyle, more demand for healthcare
Technological
 Technological Development of Medical Equipment to diagnose medical problems that
previously could not be diagnosed. It will increase usage of diagnostic services but may
decrease in-patient confinement. It will decrease usage of hospital services.
 The upgrade of Government hospital units – patients will choose government hospitals
instead of private hospitals.
Political/Legal
 Laws that prohibit denial of admission of patient to private hospitals because of
inability to pay. It will increase account receivables in hospitals.
 Regulations – membership in Philhealth (Medicine Program)
 The “One-Stop Shop System” – to improve access of the poor to good quality and
affordable healthcare.
 Licensure of Health Facilities – To reduce transaction cost and cost of provision of
regulatory services to increase customer trust and satisfaction.