Health Accounts Meeting 30 Sept – 1 October 2004

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Developing Activity and Product Classifications

for the Modern Economy:

What about health services?

Isaac Lagnado

OECD Statistics Directorate

Health Accounts Meeting 30 Sept – 1 October 2004

2

ISIC and CPC

What is ISIC?

proposed ISIC rev 4 structure and health services

What is CPC?

current CPC v 1.1 for health

Process and timing

Health Accounts Meeting 30 Sept – 1 October 2004

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What is ISIC? International Standard Industrial Classification of All Economic

Activities (ISIC)

To be a standard classification of productive economic activities

To classify economic units according to the principal activity they carry out

Health Accounts Meeting 30 Sept – 1 October 2004

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Why do we need a new ISIC

Improve international comparability

• convergence of regional classifications e.g. NAICS/NACE/JSIC/ANZSIC

• engage more countries and regions in ISIC design

• target is to obtain international comparability at least at 2 digit level

Improve relevance

• Information sector, internet, Telecoms • OECD ICT definition• environmental services • new technologies • growing business service sector• health services • Tourism • Agriculture

Assure continuity.

• Analysts need long time series

Health Accounts Meeting 30 Sept – 1 October 2004

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What’s new? New groupings are proposed

– Information and communication sector– water supply, sewerage, waste management and remediation

More tabulation categories for services– professional technical, and business services– administrative and support services– real estate, rental and leasing services– art, entertainment and recreation

More divisions ( to increase international comparability)– for new groupings and growing services – in manufacturing and construction– human health services

Health Accounts Meeting 30 Sept – 1 October 2004

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Professional, scientific and technical activities

64 legal and accounting activities– 641 legal;642 accounting

65 holding companies, management and management consultancy activities– 651 holding companies; 652 head offices; 653 management and management

consultancy 66 architecture and engineering activities 67 scientific research and development

– N.B. 6711 research and experimental development in biotech 68 advertising and market research 69 photographic and other prof, scient, and technical activities 70 veterinary activities (formerly with health and social work)

Health Accounts Meeting 30 Sept – 1 October 2004

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Human health and social work

77 human health activities– 771 hospital activities– 772 medical and dental practices– 779 other human health activities (includes paramedic activities and

medical testing)

78 residential care services– 781 nursing care facilities– 782 residential mental health and related services– 783 community care facilities for the elderly– 789 social work activities with accommodation

79 social work activities without accommodation

Health Accounts Meeting 30 Sept – 1 October 2004

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ISIC revision mechanism

UN Statistics CommissionUN Statistics Commission( UNSC))

(Heads of National Statistics Offices))

UN Experts Group on Economic and Social ClassificationsUN Experts Group on Economic and Social Classifications(experts from 30 countries and international Organisations)

Technical sub-group of Expert Group (TSG)Technical sub-group of Expert Group (TSG)(8-10 countries inc. Eurostat, N. America, Japan, Australia,

India, France, NL, Argentina, plus UN, IMF, others)

Health Accounts Meeting 30 Sept – 1 October 2004

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ISIC Revision 4 Consultationapproximate timetable

Worldwide consultation closes November 2004 TSG meet spring 2005 Revised draft goes to UN Expert Group June 2005 Final draft goes to UNSC December 2005 for

approval Prepare full publication Publish early 2007

Health Accounts Meeting 30 Sept – 1 October 2004

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NAICS minor revision 2007 NACE plans to remain derived from ISIC ANZSIC 06- a version of NAICS JSIC introduced IC sector in 2002 converged with

ISIC and NAICS but constrained by ministries-– expect convergence to continue after next revision

Others? China, India, Mercosur, Russia

What about Regional Activity Classifications?

(relate to ISIC to varying extents)

Health Accounts Meeting 30 Sept – 1 October 2004

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What are the ISIC issues for OECD?

international comparability reflect modern economy continuity of time series analytically useful groupings Information and Communication Technologies (ICT) Health High-tech New Trade links …

Health Accounts Meeting 30 Sept – 1 October 2004

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Revision of CPC

Central Product Classification developed in 1980s and 90s principally to provide the first internationally agreed product list for goods and services.

Adopted by UN officially in 1998 Designed for goods less detailed than trade products in Harmonised

System Used indirectly to help build economic statistics on output, prices and

trade Currently on CPC version 1.1 agreed in 2002 Plan to revise CPC for 2007

Health Accounts Meeting 30 Sept – 1 October 2004

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CPC version 1.1 and Health Services

93 Health and social services– 931 human health services

• 9311 - Hospital services • 9312 - Medical and dental services

– 93121 - General medical services – 93122 - Specialized medical services – 93123 - Dental services

• 9313 - Other human health services

– 932 veterinary services– 933 social services

• 9331- Social services with accommodation • 9332 - Social services without accommodation(For full descriptions go to UNSD or Ramon Classification webpages)

Health Accounts Meeting 30 Sept – 1 October 2004

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Detailed Classification Webpages

UNSD http://unstats.un.org/unsd/cr/registry/regcs.asp?Cl=16&Lg=1&Co=933

Eurostat Ramon

http://europa.eu.int/comm/eurostat/ramon/

Health Accounts Meeting 30 Sept – 1 October 2004

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CPC issues for OECD

Updating of services descriptions More detail on services generally ICT services Health services – links to health accounting Links with industry, trade and price classifications Make use regional product classifications such as

– North American Product Classification System (NAPCS)

– Australia and New Zealand ANZSPC

– Europe CPA Facilitate future analytical work Improve infrastructure of industry and services statistics

Health Accounts Meeting 30 Sept – 1 October 2004

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Approximate CPC revision timetable

Proposals for new CPC products to UNSD 10 October 2004!

UN TSG produces draft of new CPC winter 2004 Draft sent for worldwide consultation in 2005 Finalise in 2006 Submission to UNSC for final approval 2007

Health Accounts Meeting 30 Sept – 1 October 2004

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Over to you

Any questions or comments?

Proposals and comments to STD.servstat@oecd.org

so that we can advise the UN

Thank you for your attention