NAICS 621111
Physician Practices in Palo Alto, CA
The 4 ZIP codes assigned to Palo Alto contained 91 Medical Practice establishments in 2023, of which 16 employed 10 or more people.
- Establishments (2023)
- 91
- 4 ZIP codes
- 10 or more employees
- 16
- Practical financing floor
- Share of county
- 8%
- Santa Clara County
- City population
- 67,609
- 2025 estimate
Figures cover the ZIP codes the U.S. Postal Service assigns to Palo Alto (94301, 94303, 94304, 94306). 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 Palo Alto'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.
| Employees | Establishments | Share | Distribution |
|---|---|---|---|
| 1-4 | 60 | 65.9% | |
| 5-9 | 6 | 6.6% | |
| 10-19 | 8 | 8.8% | |
| 20-49 | 8 | 8.8% |
How this market compares
Palo Alto 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.
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
- -17%
- Share of local businesses
- Rank by count
- #79
- of 373 cities
- Rank by share
- #160
- of 297 ranked
- Since 2020
- -13%
- Change in establishments
This compares how much of Palo Alto’s business base is physician practices, against the California figure. Base: 3,843 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
Palo Alto tracks the California size distribution closely.
| Share of establishments | Palo Alto | California | Difference |
|---|---|---|---|
| Under 5 employeesOwner-operated, often no management layer | 65.9% | 65.6% | +0.3% |
| 5 to 49 employeesThe range most individual buyers target | 24.2% | 27.4% | -3.3% |
| 10 or more employeesPractical floor for acquisition financing | 17.6% | 12.9% | +4.7% |
Nearest comparable markets
The closest places to Palo Alto 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.
| Market | Establishments | Vs state share |
|---|---|---|
| Los Altos | 41 | +6% |
| Mountain View | 93 | +10% |
| Atherton | 8 | n/a |
| Portola Valley | 9 | n/a |
| Menlo Park | 46 | -8% |
The wider Santa Clara County market
Employment and payroll are reported at county level only, so the figures below describe the county Palo Alto sits in.
- County establishments (2023)
- 1,139
- Santa Clara County
- County employees
- 10,426
- Mid-March employment
- County annual payroll
- $1.5B
- All establishments
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 Palo Alto
Nearby cities
Sources
- 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.
- U.S. Census Bureau, 2023 County Business Patterns. Establishment counts, employment and annual payroll by NAICS. Retrieved 2026-09-08.
- 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.