U.S. SECURITIES AND EXCHANGE COMMISSION
                     ---------------------------------------


                             Washington, D.C. 20549
                             ----------------------


                                  Form 10 - QSB
                                  -------------


                   Quarterly Report Under Section 13 or 15 (d)
                   -------------------------------------------
                     of the Securities Exchange Act of 1934
                     --------------------------------------

                  For the Quarterly Period Ended March 31, 1999
                  ---------------------------------------------


                           Commission File No. 0-12968
                           ---------------------------


                        INMEDICA DEVELOPMENT CORPORATION
                        --------------------------------
        (Exact name of small business issuer as specified in its charter)
        -----------------------------------------------------------------



            Utah                                     87-0397815         
-------------------------------            -------------------------------- 
(State or other jurisdiction of            (I.R.S. Employer Identification
 incorporation of organization)                        Number)

                               825 North 300 West
                           Salt Lake City, Utah 84103
                    (Address of principal executive offices)

                         Registrant's telephone number:
                         ------------------------------
                                 (801) 521-9300


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<PAGE>




Check  whether the issuer (1) filed all reports  required to be filed by Section
13 or 15(d) of the  Exchange  Act of 1934 during the past 12 months (or for such
shorter period that the  registrant was required to file such reports),  and (2)
has been subject to such filing  requirements for the past 90 days: Yes [X] No [
]


The number of shares outstanding of the registrant's only class of common stock,
par value $.001 per share, as of May 1, 1999 was 8,660,899 shares.


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PART I - FINANCIAL INFORMATION
------------------------------

Item 1. Financial Statements


                 INMEDICA DEVELOPMENT CORPORATION AND SUBSIDIARY
                      CONDENSED CONSOLIDATED BALANCE SHEET


                                     ASSETS


                                               March 31,
                                             ----------- 
                                                 1999        
                                             (Unaudited)

        CURRENT ASSETS:
           Cash                             $   28,065
           Prepaid expenses                     12,037 
                                            -----------

                Total current assets            40,102

        EQUIPMENT AND FURNITURE,
          at cost, less accumulated
          depreciation of $251,635               1,354

        OTHER ASSETS                             2,196 
                                            -----------


                Total assets                $   43,652
                                            ===========


            See notes to condensed consolidated financial statements.

                                       3
<PAGE>

                 INMEDICA DEVELOPMENT CORPORATION AND SUBSIDIARY
                CONDENSED CONSOLIDATED BALANCE SHEET (Continued)


                      LIABILITIES AND STOCKHOLDERS' DEFICIT

                                              March 31,
                                             -----------
                                                 1999   
                                             (Unaudited)

        CURRENT LIABILITIES:
           Consulting fee payable to
              related party                 $   64,995
           Note payable to
              related party                    145,000
           Accounts payable                         87
           Accrued payroll                         792
                                            ----------


                Total current liabilities      210,874
                                            ----------


        STOCKHOLDERS' DEFICIT:
           Common stock, $.001 par value;
            20,000,000 shares authorized,
            8,660,899 issued and outstanding     8,661

           Preferred stock,  10,000,000
            shares  authorized;  Series A
            preferred stock, cumulative
            and convertible, $4.50 par
            value, 1,000,000 shares
            designated, 25,356 shares
            issued and outstanding             114,102
           Additional paid-in capital        6,835,840
           Accumulated deficit              (7,125,825)
                                            ----------

                Total stockholders'
                 deficit                      (167,222)
                                            ----------
                Total liabilities and
                 stockholders' deficit      $   43,652
                                            ==========


            See notes to condensed consolidated financial statements.



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<PAGE>


                 INMEDICA DEVELOPMENT CORPORATION AND SUBSIDIARY
                 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS



                                                 For the Three
                                                 Months Ended
                                                   March 31,
                                            ---------------------       
                                              1999          1998
                                            -------       -------   
                                                 (Unaudited)



          TOTAL OPERATING REVENUES         $     -0-         -0-
                                           ----------    ----------

          OPERATING EXPENSES:
            General and
             administrative                   37,789       70,964
            Research and
             development                       2,002       66,358
                                           ----------    ----------
              Total operating expenses        39,791      137,322
                                           ----------    ----------

          LOSS FROM OPERATIONS               (39,791)    (137,322)
                                           ----------    ----------

          OTHER INCOME (EXPENSE):
            Miscellaneous income                 146          595
            Interest expense                  (3,172)      (3,214)
                                           ----------    ----------

             Total other expense              (3,026)      (2,619)
                                           ----------    ----0-----

          NET LOSS                           (42,817)    (139,941)

          PREFERRED STOCK DIVIDEND            (2,282)      (2,282)
                                           ----------    ----------

          NET LOSS APPLICABLE TO
           COMMON SHARES                   $ (45,099)  $ (142,223)
                                           ----------    ----------
          Net loss per common share
            (basic and diluted)            $    (.01)  $     (.02)
                                           ----------    ----------
          Weighted average number
            of common shares outstanding   8,660,899    8,550,899
                                           ==========   =========

            See notes to condensed consolidated financial statements.


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<PAGE>




                 INMEDICA DEVELOPMENT CORPORATION AND SUBSIDIARY
                 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

                           INCREASE (DECREASE) IN CASH

                                                       For the Three
                                                       Months Ended
                                                         March 31,
                                                    ------------------       
                                                     1999        1998 
                                                    ------      ------   
                                                        (Unaudited)

     CASH FLOWS FROM OPERATING ACTIVITIES:

       Net loss                                  $ (42,817) $(139,941)
       Adjustments to reconcile net
         loss to net cash used in
         operating activities-
           Depreciation                                217        216
           Expense related to stock options
             issued as compensation for
             services                                  -       22,250
           Change in assets and liabilities-
             Decrease in royalties receivable       45,920     67,200    
             Decrease in prepaid
               expenses                              4,750      5,000
             Increase in consulting fee payable
               to related party                     12,999     12,999
             Decrease (increase)in accounts
               payable                             (29,011)     6,495
             Decrease in accrued payroll              (276)    (6,152)
             Decrease in interest payable              -       (1,538)
             Decrease in related-party
               payable                                 -      (25,000)
                                                  ---------   --------

               Net cash used in
                  operating activities              (8,218)   (58,471)
                                                  ---------   --------


            See notes to condensed consolidated financial statements.


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<PAGE>


                 INMEDICA DEVELOPMENT CORPORATION AND SUBSIDIARY
           CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Continued)

                           INCREASE (DECREASE) IN CASH

                                                       For the Three
                                                       Months Ended
                                                         March 31,
                                                 ----------------------      
                                                   1999          1998
                                                  ------        ------   
                                                       (Unaudited)

   CASH FLOWS FROM FINANCING ACTIVITIES:

     Preferred stock dividends paid            $  (2,282)    $ (2,282)
                                                 --------      -------
     Net cash used in financing activities        (2,282)      (2,282)
                                                 --------      -------


   NET DECREASE IN CASH                          (10,500)     (60,753)

   CASH AT BEGINNING OF PERIOD                    38,565      138,429
                                                 --------      -------

   CASH AT END OF PERIOD                        $ 28,065     $ 77,676
                                                 ========      =======



            See notes to condensed consolidated financial statements.


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INMEDICA DEVELOPMENT CORPORATION AND SUBSIDIARY


NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)


Note A--Basis of Presentation

The accompanying unaudited condensed consolidated financial statements have been
prepared in accordance with generally accepted accounting principles for interim
financial  information and with the instructions to Form 10-QSB and Item 310b of
Regulation  SB.  Accordingly,  they do not  include all of the  information  and
footnotes  required by generally  accepted  accounting  principles  for complete
financial  statements.  These  consolidated  statements  include the accounts of
InMedica Development Corporation and its wholly owned subsidiary, MicroCor, Inc.
("MicroCor").  All material  intercompany  accounts and  transactions  have been
eliminated.

In the  opinion  of  management,  all  adjustments  (consisting  only of  normal
recurring  adjustments)  considered  necessary for fair  presentation  have been
included.  Operating results for the three-month period ended March 31, 1999 are
not  necessarily  indicative  of the results  that may be expected  for the year
ending  December 31, 1999. For further  information,  refer to the  consolidated
financial  statements  included in the Company's  Form 10-KSB for the year ended
December 31, 1998.

Royalties  received  from the Johnson and Johnson  agreement  are  presently the
Company's sole source of revenue and the royalty is expected to terminate during
1999.  The Company  generated a net loss from  operations of $39,791  during the
period  ended  March  31,  1999 and as of March 31,  1999,  the  Company  had an
accumulated  deficit of  $7,125,825  and negative  working  capital of $170,772.
These conditions raise substantial doubt as to the Company's ability to continue
as a going  concern.  The Company's  continued  existence is dependent  upon its
ability to achieve a viable operating plan. The Company has presently  scheduled
several  demonstrations  of its  technology  to  potential  strategic  partners,
although it has no commitments to partner in the development of the technology.


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Item 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL                  
         CONDITION AND RESULTS OF OPERATIONS

Liquidity and Capital Resources

     For the years ended  December 31, 1998 and 1997,  liquidity  was  generated
from royalty income received from Johnson and Johnson  Medical,  Inc.  ("JJMI").
This income is expected to terminate during 1999. InMedica continues to look for
other funding sources but as of the date of this filing,  it has no commitments.
For  the  three  months  ended  March  31,  1999,  no  operating  revenues  were
recognized.  The Company's revenue recognition policy requires sales information
upon which the royalties are calculated to have been received from JJMI and that
cash receipts are assured prior to recording revenue.

     The royalty agreement with JJMI has been pledged to secure repayment of the
$145,000  related party note payable.  Funds expended to develop other potential
assets of the Company such as a hematocrit device have been expensed as incurred
as research and  development.  The ability of the Company to use the  hematocrit
device as a means of securing funding for the Company is totally  dependent upon
the success of further  research and  development  efforts in producing a viable
device suitable for commercialization.

Results of Operations

     InMedica  has a  stockholders'  deficit  of $  167,222  and an  accumulated
deficit of  $7,125,825  as of March 31, 1999.  In order for InMedica to continue
research and development activities,  it will require additional financing,  for
which  it has  no  commitments.  See  Liquidity  and  Capital  Resources  for an
explanation of why no revenues were recognized in the first quarter of 1999.

     The loss from  operations  of $39,791 for the quarter  ended March 31, 1999
compared to $137,322 for the quarter  ended March 31, 1998 resulted from general
and  administrative  expenses  ($37,789) and research and  development  expenses
($2,002) being incurred while at the same time there were no revenues.  Research
and  development  expense was minimal as the decline in royalty  income  limited
available cash during the quarter.  General and administrative expense decreased
by 47% compared to the same period o the prior year,  which had included $22,250
of expense related to stock options issued as non-cash compensation.

     The  Company  does not  expect  that its own  operations  will be  directly
affected by the Year 2000 computer issue ("Y2K"),  however the Company is unable
to forecast any indirect adverse effect of computer or other device  malfunction
related to Y2K on the medical technology  industry and the business of potential
strategic  partners.  The Company has contacted JJMI and Medical Physics and has
been assured  that they are acting  responsibly  to avoid any adverse  impact on
their ability to conduct their operations due to the Y2K issue.

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<PAGE>


     PART II - OTHER INFORMATION
     ---------------------------

Item 1.      Legal Proceedings:
             None

Item 2.      Changes in Securities:
             None

Item 3.      Defaults Upon Senior Securities:
             None

Item 4.      Submission of Matters to a Vote of Security Holders:
             None

Item 5.      Other Information: None

Item 6.      Exhibits and Reports on Form 8-K:

             Exhibits:    1  Financial Data Schedule


             Form 8-K:  None




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                                   SIGNATURES
                                   ----------

         In accordance with the requirements of the Exchange Act, the registrant
caused this report to be signed on its behalf by the undersigned, thereunto duly
authorized.

                                  INMEDICA DEVELOPMENT CORPORATION


Dated: May  13, 1999
                                By /s/Larry E. Clark
                                  -----------------------------
                                  Larry E. Clark, CEO



                                By /s/Richard Bruggeman
                                  -----------------------------
                                  Richard Bruggeman, Treasurer



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                                    EXHIBITS


Exhibits  filed with the Form 10-QSB of InMedica  Development  Corporation,  SEC
File No. 0-12968:


Exhibit No.      SB Item No.       Description
----------------------------------------------

   1              (27)          Financial Data Schedule

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