What Is NAICS Code 621111 for Offices of Physicians?

The North American Industry Classification System (NAICS) is a government framework used to categorize businesses based on their primary economic activity. This system allows for the standardized collection and analysis of economic data. NAICS code 621111 is assigned to establishments of licensed physicians, holding either a Doctor of Medicine (M.D.) or Doctor of Osteopathy (D.O.) degree, who are primarily engaged in the practice of medicine from their offices.

Scope of NAICS Code 621111

This classification covers the offices of licensed medical doctors, including a wide array of general and specialized medical practices. For instance, the offices of family doctors, general practitioners, pediatricians, and internists fall within this code. The code also applies to the practices of medical specialists, such as cardiologists, dermatologists, oncologists, ophthalmologists, and orthopedic surgeons. The services must be provided by licensed M.D.s or D.O.s in a private or group practice setting.

The NAICS system has distinct classifications for many healthcare-related practices, which are excluded from code 621111. For example, offices of dentists are classified under NAICS code 621210, chiropractors are categorized under 621310, and optometrists are assigned 621320. This distinction extends to mental health services; the offices of psychiatrists, who are physicians, are classified differently than those of other mental health practitioners like psychologists or clinical social workers.

Common Uses and Importance

NAICS code 621111 has several practical applications for a physician’s office. Government agencies like the U.S. Census Bureau and the Bureau of Labor Statistics use NAICS data to publish reports on industry trends, employment figures, and economic growth. This information can inform policy and business decisions.

The Small Business Administration (SBA) uses NAICS codes to determine eligibility for certain loan programs and government contracts, sometimes setting aside opportunities for businesses within specific industries. Insurance companies may also use the code to assess risk and determine premiums for liability and workers’ compensation policies. The code is also used for tax purposes to identify the taxpayer’s primary business activity on federal returns.

How to Report Your NAICS Code

When completing government forms, a business must report the NAICS code that corresponds to its primary activity. For a medical practice, the primary activity is the one that generates the largest portion of the establishment’s revenue. For example, if a physician’s office earns most of its income from providing general medical care, it would use 621111, even if it also offers ancillary services that could fall under another code.

The designated field for the NAICS code is found near the top of federal tax forms. For instance, a sole proprietor would report this code on Schedule C (Form 1040) in the box for the “Principal business or professional activity code.” A corporation would use Form 1120, which has a specific line item for this purpose. The IRS provides a full list of codes in the instructions for each business tax form to confirm the correct classification.