NAICS 621111

Physician Practices in Gilroy, CA

The 1 ZIP codes assigned to Gilroy contained 28 Medical Practice establishments in 2023, of which 3 employed 10 or more people.

Establishments (2023)
28
1 ZIP codes
10 or more employees
3
Practical financing floor
Share of county
2%
Santa Clara County
City population
60,764
2025 estimate

Figures cover the ZIP codes the U.S. Postal Service assigns to Gilroy (95020). ZIP areas are not municipal boundaries: they can extend beyond city limits and are shared between neighbouring places. This is a count of establishments in Gilroy's ZIP codes, not a count of businesses inside its city limits.

Establishments by size

Employee-count distribution. For most buyers the businesses worth pursuing sit in the 5 to 49 range: large enough to have a manager and real systems, small enough to be owner-operated.

EmployeesEstablishmentsShareDistribution
1-41967.9%
5-9621.4%
10-19310.7%

How this market compares

Gilroy against every other city in California on the same measure. City figures cover the ZIP codes assigned to the place rather than its municipal boundary, so they are compared as a share of the businesses in those same ZIP codes rather than per resident. Cities with fewer than 500 businesses in total are left unranked.

Below average1.81% of local businesses, against 2.85% statewide

A smaller slice of the local business base than the statewide share. Often an underserved market, though it can also mean the work is done by firms based in a neighbouring town.

Vs state share
-37%
Share of local businesses
Rank by count
#192
of 373 cities
Rank by share
#204
of 297 ranked
Since 2020
+4%
Change in establishments

This compares how much of Gilroy’s business base is physician practices, against the California figure. Base: 1,551 establishments across all industries in the same ZIP codes, 2023. It does not measure revenue, profitability or whether a market is worth entering.

Business size mix

Gilroy tracks the California size distribution closely.

Share of establishmentsGilroyCaliforniaDifference
Under 5 employeesOwner-operated, often no management layer67.9%65.6%+2.2%
5 to 49 employeesThe range most individual buyers target32.1%27.4%+4.7%
10 or more employeesPractical floor for acquisition financing10.7%12.9%-2.2%

Nearest comparable markets

The closest places to Gilroy that also have Medical Practice establishments on record. Useful for spotting a gap next door, or realising the market you are looking at is already served from the town over.

MarketEstablishmentsVs state share
Morgan Hill25-37%
Watsonville22-50%
Hollister25-14%
Capitola16+8%
Salinas69-30%

The wider Santa Clara County market

Employment and payroll are reported at county level only, so the figures below describe the county Gilroy sits in.

County establishments (2023)
1,139
Santa Clara County
County employees
10,426
Mid-March employment
County annual payroll
$1.5B
All establishments
Full Medical Practice data for Santa Clara County

What acquirers look at

California’s corporate practice of medicine doctrine restricts lay ownership, so deals are structured as MSO arrangements. Not a first acquisition for an unlicensed buyer.

Other industries in Gilroy

Nearby cities

Sources

  1. U.S. Census Bureau, 2023 ZIP Code Business Patterns. Establishment counts and size distribution by ZIP code and NAICS, aggregated over the ZIP codes assigned to each city. Retrieved 2026-09-08.
  2. U.S. Census Bureau, 2023 County Business Patterns. Establishment counts, employment and annual payroll by NAICS. Retrieved 2026-09-08.
  3. U.S. Bureau of Labor Statistics, Quarterly Census of Employment and Wages (2026Q1). Quarterly establishment counts and employment for employers covered by unemployment insurance. Retrieved 2026-09-08.