NAICS 621111 Quarterly Industry Report
Offices of Physicians (except Mental Health Specialists)
Comprehensive industry research for valuation professionals, business owners, buyers, and lenders
NAICS Code: 621111Sector: Health Care and Social Assistance (62)Updated: Q1 2026
About This Report
This industry profile for Offices of Physicians (NAICS 621111) draws on data from the U.S. Census Bureau[8], Bureau of Labor Statistics[6], HHS HIPAA compliance data[9], and SBA size standards database[7]. Published by Fair Market Value and updated quarterly, it provides valuation professionals, healthcare analysts, and business appraisers with current market data. The editorial analysis reflects the independent assessment of FairMarketValue.com's research team, with all quantitative claims sourced to publicly verifiable databases.
Industry Snapshot
Key metrics for the offices of physicians (except mental health specialists) industry.
NAICS Sector
62
Health Care and Social Assistance
Industry Definition & Overview
Offices of Physicians (except Mental Health Specialists) (NAICS 621111) encompasses establishments of health practitioners having the degree of M.D. (Doctor of Medicine) or D.O. (Doctor of Osteopathy) primarily engaged in the independent practice of general or specialized medicine or surgery per the U.S. Census Bureau[5]. This classification excludes mental health specialists, who are classified separately. Establishments operate as solo practices, group practices, physician-owned clinics, and multi-specialty medical groups providing outpatient diagnostic and treatment services.
The Bureau of Labor Statistics[6] reports roughly 137,660 establishments employing 2.63 million workers, with annual payroll exceeding $254 billion. Ascension Medical Group operates from over 1,100 locations as the largest physician group, while Permanente Medical Groups, Intermountain Healthcare Physicians, and HCA Physicians also maintain extensive networks. Over 155,000 physician groups operate nationwide, reflecting ongoing consolidation from solo practice into multi-provider organizations.
Per the SBA Table of Size Standards[7], the size standard is $16 million in average annual receipts. Telemedicine adoption has accelerated sharply, with 71 percent of physicians reporting weekly telehealth use in 2024. HIPAA compliance governs all electronic health records and protected health information handling, while state medical boards enforce licensing, continuing education, and scope of practice requirements. Malpractice insurance remains a material operating expense, particularly for surgical and high-risk specialties. Private equity investment in physician practice management has driven rapid consolidation in dermatology, orthopedics, and gastroenterology subspecialties.
What's Included in This Industry
- General practice and family medicine office operations
- Internal medicine and subspecialty physician services
- Surgical specialty outpatient practice operations
- Pediatric and adolescent medicine office services
- Obstetrics and gynecology practice operations
- Cardiology, oncology, and other specialty clinics
- Telemedicine and virtual consultation delivery
- Diagnostic imaging and in-office laboratory services
- Electronic health record management and HIPAA compliance
- Multi-specialty group practice administration
NAICS Classification Hierarchy
| Level | Description | Code |
|---|---|---|
| Sector | Health Care and Social Assistance | 62 |
| Subsector | Ambulatory Health Care Services | 621 |
| Industry Group | Offices of Physicians | 6211 |
| NAICS Industry | Offices of Physicians | 62111 |
| National Industry | Offices of Physicians (except Mental Health Specialists) | 621111 |
Related NAICS Codes
| Code | Description | Relationship |
|---|---|---|
| 621112 | Offices of Physicians, Mental Health Specialists | Offices of Physicians, Mental Health Specialists share the physician practice model but focus on psychiatric and psychological treatment, with many health systems operating both general and mental health physician offices under integrated care networks |
| 621210 | Offices of Dentists | Offices of Dentists share the independent practitioner office model and face similar reimbursement, staffing, and regulatory compliance challenges, though dental practices operate under separate licensing and accreditation frameworks |
| 621610 | Home Health Care Services | Home Health Care Services deliver physician-ordered medical care outside the office setting, with home health agencies executing treatment plans prescribed by physicians in office-based practices |
| 622110 | General Medical and Surgical Hospitals | General Medical and Surgical Hospitals employ physicians and serve as referral destinations for complex cases that exceed outpatient office capabilities, creating bidirectional patient flow between hospital and office settings |
| 621399 | Offices of All Other Miscellaneous Health Practitioners | Offices of All Other Miscellaneous Health Practitioners provide complementary services such as acupuncture and naturopathy that patients may combine with conventional physician office visits for integrated treatment approaches |
| 524114 | Direct Health and Medical Insurance Carriers | Direct Health and Medical Insurance Carriers reimburse physician office services and set reimbursement rates that directly influence practice revenue, with insurance contracting representing a primary financial relationship for most physician offices |
Geographic Concentration
Top states by share of national establishments.
| # | State | % Est. | Total Est. |
|---|---|---|---|
| 1 | California | 14.4% | 28,447 |
| 2 | Texas | 10.4% | 20,502 |
| 3 | Florida | 9.6% | 19,062 |
| 4 | New York | 6.3% | 12,434 |
| 5 | Pennsylvania | 3.8% | 7,444 |
| 6 | New Jersey | 3.7% | 7,297 |
| 7 | Georgia | 3.5% | 7,007 |
| 8 | Illinois | 3.3% | 6,511 |
| 9 | Michigan | 3.2% | 6,354 |
| 10 | Ohio | 2.8% | 5,588 |
% Of Establishments
0%
14%
Source: County Business Patterns, U.S. Census Bureau[3]
SBA Lending Summary
6,920
Total SBA Loans
$3.6B
Total Loan Volume
$527K
Average Loan Size
12 yrs
Average Loan Term
10.01%
Average Interest Rate
56,720
Jobs Supported
Source: SBA 7(a) Program Data, U.S. Small Business Administration — FY 2025[4]
Key Insight: Per the SBA Table of Size Standards[7], Offices of Physicians (NAICS 621111) has a size standard of $16 million in average annual receipts for federal contracting purposes. SBA lending programs[10] support practice acquisition, equipment purchases, and facility expansion for qualifying physician office operators. Eligible businesses can access SBA 7(a) loans[11] for working capital, equipment, and acquisition financing, while 504 loans[12] support major fixed-asset purchases including real estate and heavy machinery.
Top SBA Lenders
| # | Lender | Loans | Volume | Avg Loan |
|---|---|---|---|---|
| 1 | Newtek Bank, National Association | 872 | $537.1M | $616K |
| 2 | The Huntington National Bank | 632 | $391.9M | $620K |
| 3 | Live Oak Banking Company | 232 | $372.9M | $1.6M |
| 4 | JPMorgan Chase Bank, National Association | 312 | $172.4M | $552K |
| 5 | Bank of America, National Association | 216 | $134.4M | $622K |
Frequently Asked Questions
Common questions about this industry.
What is the NAICS code for physician offices?
NAICS 621111 covers offices of physicians (except mental health specialists) primarily engaged in general or specialized medicine and surgery per the U.S. Census Bureau[5].
How many physician offices operate in the U.S.?
Roughly 137,660 establishments employ 2.63 million workers per the Bureau of Labor Statistics[6], with annual payroll exceeding $254 billion across solo practices and multi-specialty groups.
What is the SBA size standard for physician offices?
The SBA size standard[7] is $16 million in average annual receipts, determining eligibility for federal small business contracting programs and SBA lending products.
How common is telemedicine in physician practices?
Roughly 71 percent of physicians reported weekly telehealth use in 2024 per Bureau of Labor Statistics[13] industry data, with virtual consultations becoming standard across primary care and many specialty practices.
What drives physician practice consolidation?
Private equity investment, hospital system acquisitions, and administrative burden from insurance compliance have driven consolidation from solo practice into multi-provider organizations, with over 155,000 physician groups operating nationwide.
What regulatory requirements apply to physician offices?
HIPAA governs electronic health records and protected health information per HHS regulatory guidance[9], while state medical boards enforce licensing, continuing education, and scope of practice requirements.
Which physician specialties are consolidating fastest?
Dermatology, orthopedics, and gastroenterology have experienced the most rapid private equity-driven consolidation, with practice management companies acquiring independent offices to build multi-location specialty platforms.
What is the largest physician group in the U.S.?
Ascension Medical Group operates from over 1,100 locations as the largest physician group, followed by Permanente Medical Groups and Intermountain Healthcare Physicians per industry tracking data.
Sources & References
Government datasets and editorial sources used in this report.
- [1]U.S. Bureau of Labor Statistics, Quarterly Census of Employment and Wages bls.gov
- [2]U.S. Census Bureau, Economic Census census.gov
- [3]U.S. Census Bureau, County Business Patterns census.gov
- [4]U.S. Small Business Administration, SBA 7(a) Loan Program Data data.sba.gov
- [5]U.S. Census Bureau census.gov
- [6]Bureau of Labor Statistics bls.gov
- [7]SBA Table of Size Standards sba.gov
- [8]U.S. Census Bureau data.census.gov
- [9]HHS HIPAA compliance data hhs.gov
- [10]SBA lending programs sba.gov
- [11]SBA 7(a) loans sba.gov
- [12]504 loans sba.gov
- [13]Bureau of Labor Statistics bls.gov
Disclaimer
This publication has been prepared by Fair Market Value (“Fair Market Value”) for informational purposes only. It is provided on an “as-is” and “as available” basis. Fair Market Value makes no representations or warranties, express or implied, regarding the merchantability, fitness for a particular purpose, completeness, or accuracy of the data or information contained herein. This publication is not intended to be, and should not be construed as, professional financial, legal, tax, or investment advice. Users should consult with qualified professionals before making any financial or business decisions based on the information presented.
To the extent permitted by law, Fair Market Value disclaims all liability for loss or damage, direct and indirect, suffered or incurred by any person resulting from the use of, or reliance upon, the data in this publication.
Copyright © 2026 Fair Market Value. All rights reserved. All data, information, articles, graphs, and content contained in this publication are copyrighted works and Fair Market Value hereby reserves all rights. No part of this publication may be copied, reproduced, republished, uploaded to a third party, or distributed without the prior written permission of Fair Market Value.