U.S. SECURITIES AND EXCHANGE
                                   COMMISSION
                             Washington, D.C. 20549

                                   Form 10QSB

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

                  For the Quarterly Period Ended March 31, 2006

                           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 (IRS Employer
              incorporation of organization) Identification Number)

                         825 North 300 West, Suite N132
                           Salt Lake City, Utah 84103
                           --------------------------
                    (Address of principal executive offices)

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

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 12, 2006 was 18,129,493 shares.


                                       1

<PAGE>



PART I - FINANCIAL INFORMATION

Item 1.  Financial Statements

                 INMEDICA DEVELOPMENT CORPORATION AND SUBSIDIARY
                           CONSOLIDATED BALANCE SHEET


                              ASSETS
                              ------
                                               As of
                                             March 31,
                                              2006
                                            (Unaudited)
                                           -----------

        CURRENT ASSETS:
           Cash & cash equivalents          $   70,846
           Prepaid expenses and other              200

                                            ----------
                Total current assets            71,046


        EQUIPMENT AND FURNITURE,
          at cost, less accumulated
          depreciation of $253,885               1,337

                                            ----------


                Total assets                $   72,383
                                            ==========






















            See notes to consolidated financial statements

                                       2

<PAGE>

                 INMEDICA DEVELOPMENT CORPORATION AND SUBSIDIARY
                     CONSOLIDATED BALANCE SHEET (Continued)

                      LIABILITIES AND STOCKHOLDERS' EQUITY
                      -------------------------------------

                                                          As of
                                                         March 31,
                                                           2006
                                                          ------
                                                       (Unaudited)

        CURRENT LIABILITIES:
           Related party consulting fees payable       $    36,000
           Note payable                                     76,161
           Accrued interest                                    825
           Accounts payable                                  4,239
           Preferred stock dividend payable                 35,937
                                                      ------------

                Total current liabilities                  153,162
                                                       -----------

            MINORITY INTEREST                               (9,430)
                                                       -----------

        STOCKHOLDERS' EQUITY:
           Preferred stock, 10,000,000
            shares authorized; Series A
            preferred stock, cumulative and
            convertible, $4.50 par value,
            1,000,000 shares designated,
            21,016 shares issued and
            outstanding                                     94,573
           Common stock, $.001 par value;
            40,000,000 shares authorized,
            18,129,493 issued and outstanding               18,129
           Additional paid-in capital                    8,377,339
           Accumulated deficit                          (8,561,390)
                                                        ----------

                Total stockholders equity                  (71,349)
                                                        ----------
                Total liabilities and
                 stockholders' equity                   $   72,383
                                                        ==========











            See notes to consolidated financial statements

                                       3

<PAGE>

                 INMEDICA DEVELOPMENT CORPORATION AND SUBSIDIARY
                      CONSOLIDATED STATEMENTS OF OPERATIONS

                                               For the Three
                                               Months Ended
                                                 March 31,
                                             2006        2005
                                           --------    --------
                                                (Unaudited)
          TOTAL ROYALTY REVENUES            $   -0-         -0-
                                           --------    --------

          OPERATING EXPENSES:
            General and
              administrative                 34,654      61,413
            Research and
             development                        -0-       1,145
                                           --------    --------
              Total operating expenses       34,654      62,558
                                           --------    --------

          LOSS FROM OPERATIONS              (34,654)    (62,558)
                                           --------    --------

          OTHER INCOME:
            Other income, net                   107       3,337
                                           --------    --------
             Total other income, net            107       3,337
                                           --------    --------

          LOSS BEFORE MINORITY INTEREST     (34,547)    (59,221)

          MINORITY INTEREST                   1,762       5,287
                                           --------    --------
              NET LOSS                      (32,785)    (53,934)

              PREFERRED STOCK DIVIDENDS      (1,892)     (1,892)
                                           --------    --------

          NET LOSS APPLICABLE TO
           COMMON STOCKHOLDERS             $(34,677) $ (55,826)
                                           ========   =========
          NET LOSS PER COMMON SHARE
            (BASIC AND DILUTED)            $   (.00)  $   (.00)
                                           ========   ========

          Weighted average number
             of common shares outstanding 18,129,493 17,278,949
                                           =========  =========






            See notes to consolidated financial statements.

                                       4

<PAGE>

                 INMEDICA DEVELOPMENT CORPORATION AND SUBSIDIARY
                      CONSOLIDATED STATEMENTS OF CASH FLOWS


                                                    For the Three
                                                     Months Ended
                                                       March 31,
                                                    2006       2005
                                                  --------   --------
                                                     (Unaudited)
     CASH FLOWS FROM OPERATING ACTIVITIES:

       Net loss                                  $ (32,785) $( 53,934)
       Adjustments to reconcile net
         loss to net cash used in
         operating activities-
           Depreciation and amortization               155         45
           Interest income from amortization
             or discount on notes receivable          (335)    (2,297)
           Minority interest in losses              (1,762)    (5,287)
           Change in assets and liabilities
             Consulting fee payable to
               related party                         6,000    (38,000)
             Accounts payable                        3,762     (2,871)
             Accrued interest payable                  229         50
             Accrued payroll and related taxes      (5,553)   (32,521)
                                                  --------   --------
                Net cash used in
                  operating activities             (30,289)  (134,815)
                                                  --------   --------

     CASH FLOWS FROM INVESTING ACTIVITIES:
       Proceeds from note receivable                45,000     45,000
                                                  --------   --------
                       Net cash provided by
                         investing activities       45,000     45,000
                                                 ---------  --------

     CASH FLOWS FROM FINANCING ACTIVITIES:
       Proceeds from notes payable                  13,250     20,000
       Payments on notes payable                    (9,000)    (7,575)
       Proceeds from sale of common stock              -0-     79,100
                                                  -------  -------
                Net cash provided by
                  financing activities               4,250     91,525
                                                  --------   --------










           See notes to consolidated financial statements.

                                       5

<PAGE>

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

                                                      For the Three
                                                       Months Ended
                                                         March 31,
                                                     2006       2005
                                                   ---------- -------
                                                       (Unaudited)


   NET INCREASE IN CASH                           18,961        1,710

   CASH AT BEGINNING OF PERIOD                    51,885        3,600
                                                 -------     --------

   CASH AT END OF PERIOD                        $ 70,846      $ 5,310
                                                 =======      =======


































          See notes to consolidated financial statements.

                                       6

<PAGE>

INMEDICA DEVELOPMENT CORPORATION AND SUBSIDIARY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)


1.       Basis of Presentation

The  accompanying  unaudited  consolidated  financials  statements  of  InMedica
Development  Corporation  and its  majority  owned  subsidiary,  MicroCor,  Inc.
(collectively  the Company)  have been  prepared on a going  concern basis which
contemplates  the  realization of assets and  satisfaction  of liabilities  that
might be necessary  should the Company be unable to continue as a going concern.
The Company generated a net loss $32,785 and $53,934 for the three month periods
ended  March 31,  2006 and 2005,  respectively,  and  negative  cash  flows from
operations  of $30,289 and $134,815 for the three month  periods ended March 31,
2006  and  2005,  respectively.  As of  March  31,  2006,  the  Company  had  an
accumulated  deficit  of  $8,561,390.  At March  31,  2006,  the  Company  had a
stockholder's deficit of $71,349. 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 execute its  operating  plan and to
obtain additional debt or equity  financing.  There can be no assurance that the
necessary debt or equity  financing  will be available,  or will be available on
terms  acceptable to the Company.  Management's  operating plan includes working
with Wescor to complete  research,  development and, if warranted,  marketing of
its  hematocrit   technology  and/or  pursuing  other  strategic  alliances  and
licensing  agreements such as the current Agreement with Wescor, Inc. See Item 2
- "Management's Discussion and Analysis."

The accompanying consolidated financial statements of the Company are unaudited.
However,  in management's  opinion,  all adjustments,  consisting only of normal
recurring adjustments necessary for fair presentation of results for the interim
periods shown,  have been made.  Results for interim periods are not necessarily
indicative  of  those  to be  expected  for the full  year.  These  consolidated
financial statements should be read in conjunction with the audited consolidated
financial statements and notes to consolidated  financial statements included in
the Company's annual report on form 10-KSB for the year ended December 31, 2005.


2.       Summary of Significant Accounting Policies

Principles of Consolidation - The consolidated  financial statements include the
accounts of InMedica  and  MicroCor.  All  material  inter-company  accounts and
transactions have been eliminated.

Use of Estimates - The  preparation of financial  statements in conformity  with
accounting  principles  generally  accepted  in the  United  States  of  America

                                       7

<PAGE>

requires  management to make estimates and assumptions  that affect the reported
amounts  of assets and  liabilities  and  disclosure  of  contingent  assets and
liabilities at the date of the financial  statements and the reported amounts of
revenues and expenses during the reporting  period.  Actual results could differ
from those estimates.

ITEM 2. MANAGEMENT'S  DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND PLAN OF
OPERATION

OVERVIEW.  Since 1989, the Company has engaged in research and  development of a
device  to  measure  hematocrit   non-invasively  the  "Non-Invasive  Hematocrit
Technology"  and/or the "Technology") and fund raising to finance the payment of
research,  development and administrative expenses. Hematocrit is the percentage
of red blood cells in a given volume of human blood.  Research,  development and
administrative  expenses of the Company  relating to the Technology  were funded
during  the  1990's by  borrowing  and by  royalty  revenues  from the sale of a
portable ECG monitor  which  incorporated  Company  technology.  The monitor was
marketed by  Critikon,  Inc.,  then a Johnson and  Johnson  subsidiary.  However
Critikon  discontinued  the  monitor  in 2001 and  InMedica  has not  since  had
revenues from operations. During 2001 the Company and its subsidiary,  MicroCor,
Inc. sold restricted common stock to Chi Lin Technologies,  Ltd. of the Republic
of China  (Taiwan)  for  $1,000,000  and used the funds to  continue  funding of
research,  development  and  administrative  expenses.  Chi Lin  also  signed  a
development agreement under which it performed or financed the Company's primary
research and development  effort conducted  initially in Taiwan and later in the
United  States.  When remaining  funds from the stock sale were expended  during
2003,  the Company began  searching for  additional  funding and/or a partner to
conduct additional research and development. The Company's officers and Chairman
also agreed to the accrual of their wages and consulting fees pending receipt of
funds to pay those obligations. In January 2005, the shareholders of the Company
approved  an  Agreement  with  Wescor  which  provides  additional  funding  for
administrative  expenses  and  provides  for  research  and  development  of the
Hematocrit Technology by Wescor.

PLAN OF OPERATION.  During the 12 months beginning  January,  2006 the Company's
plan of operation is to work  cooperatively  with Wescor in the  development and
possible  demonstration  of the Company's  portable  hematocrit  device to other
companies.   In   connection   with  this  effort,   the  Company  will  require
confidentiality  agreements  from parties to which  disclosure  is made and will
allow such parties to informally  evaluate the  technology in order to determine
their  interest.  During  2006,  Wescor is  expected  to fund the  research  and
development  efforts of MicroCor  pursuant to the Joint  Development  Agreement.
During  2004  and  2005,  the  Company  borrowed  from  Wescor  in order to meet
operating  expenses  and may need to rely on  borrowing  in the  future  to meet
obligations.  While the Company has in the past borrowed from  affiliates,  such
borrowing  may not be  available  in the  future  to meet  obligations  and fund
continued research and development.  If necessary,  InMedica will look for other
funding sources.

                                       8

<PAGE>

LIQUIDITY AND CAPITAL RESOURCES.

The funds  generated  from the sale of stock in 2001 were the sole source of the
Company's  cash  flow  from  May 10,  2001  until  December  31,  2003  and were
sufficient to meet the Company's  operating  expenses through December 31, 2003.
During the years 2004 and 2005 liquidity was generated by borrowings from Wescor
and from the  proceeds of the sale of  MicroCor  stock to Wescor,  Inc.,  a Utah
based medical technology  company that agreed to conduct additional  research on
and  development of the Company's  hematocrit  technology  pursuant to the Joint
Development  Agreement dated September 7, 2004 (the "Agreement").  Liquidity was
also  generated  from sales of restricted  stock to members of  management.  The
Company expects to fund the expense of its administrative operations during 2006
partially with funds from  installment  payments from Wescor for the purchase of
the MicroCor  stock.  Payments made to InMedica from the sale of MicroCor  stock
are expected to provide funding of basic administrative  expenses of the Company
during the next three months.  The Company will also seek additional  sources of
funding to pay administrative expenses for the balance of the year.

During  September,  2005,  MicroCor issued 500,000 shares of restricted stock to
Wescor pursuant to the Agreement in  consideration of development of a prototype
for the hematocrit technology. Future research and development efforts of Wescor
will continue to be compensated  through additional  issuances of MicroCor stock
to Wescor  pursuant to the  Agreement.  Among other  things,  the  Agreement may
result  in the  disposition  of  InMedica's  ownership  of its  remaining  stock
ownership of MicroCor, Inc., which holds all of the hematocrit patents, business
and  intellectual  property.  However,  if Wescor is  successful  in  completing
development,   the  regulatory  approvals  and  product  introduction  into  the
marketplace, the Company will be entitled to a royalty on sales of the product.

RESULTS OF OPERATIONS.

InMedica  incurred  net losses from  operations  during the three month  periods
ended  March 31,  2006 and 2005.  The  Company  had an  accumulated  deficit  of
$8,561,390 as of March 31, 2006 and no revenues from  operations are expected in
the foreseeable  future. The net loss from operations for the three month period
ended March 31, 2006  decreased  to $32,785  compared to the net loss of $53,934
for 2005 primarily due to an decrease in general and administrative  expenses of
$26,759. The decrease in general and administrative expenses resulted because of
professional  fees incurred in  conjunction  with a shareholder  meeting held in
January 2005 that were not incurred in 2006.



                                       9

<PAGE>

Item 3:   CONTROLS AND PROCEDURES

The  Company's  Chief  Executive   Officer  and  Chief  Financial  Officer  have
concluded,  based  on  an  evaluation  required  by  paragraph  (b)  of  Section
240.13a-15 or 240.15d-15  of the Rules of the  Securities  Exchange Act of 1934,
conducted as of the end of the period covered by this  Quarterly  Report on Form
10-QSB,  that the Company's  disclosure  controls and  procedures (as defined in
Exchange Act Rules 13a - 15e or 240.15d-15(e)) have functioned effectively.  For
purposes  of this  Item,  the term  DISCLOSURE  CONTROLS  AND  PROCEDURES  means
controls  and other  procedures  of the Company that are designed to ensure that
information required to be disclosed by the Company in the reports that it files
or  submits  under  the  Securities  Exchange  Act (15  U.S.C.  78a ET  SEQ.) is
recorded, processed,  summarized and reported, within the time periods specified
in the Commission's rules and forms. Disclosure controls and procedures include,
without limitation,  controls and procedures designed to ensure that information
required to be  disclosed by the Company in the reports that it files or submits
under  the Act is  accumulated  and  communicated  to the  issuer's  management,
including its principal executive and principal  financial officers,  or persons
performing similar functions, as appropriate to allow timely decisions regarding
required disclosure.

There have been no changes in the  Company's  internal  control  over  financial
reporting identified in connection with the evaluation required by paragraph (d)
of Section 240.13a-15 or 240.15d-15 of the Rules of the Securities  Exchange Act
of 1934,  that occurred  during the Company's last fiscal quarter (the Company's
fourth  fiscal  quarter in the case of an annual  report)  that have  materially
affected,  or is reasonably likely to materially  affect, the Company's internal
control over financial reporting.

                                       10

<PAGE>



     PART II - OTHER INFORMATION

Item 1.           Legal Proceedings:  None

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds:  During the
last three years the Company made the  following  sales of  unregistered  common
stock in reliance  upon Section 4(2) of the  Securities  Act of 1933:  5/2/2005,
715,500 shares to Chi Lin Technology  Company,  Ltd.;  1/24/05 440,000 shares to
Larry E. Clark;  1/19/05 101,000 shares to Richard  Bruggeman;  12/30/04 240,000
shares to Ralph Henson; 10/14/04 400,000 shares to Larry E. Clark. The foregoing
sales were of  restricted  securities  and were  issued to  officers,  directors
and/or principal  shareholders of the Company who purchased the securities based
upon their  representations  that they were purchasing for their own account and
not for resale.

Item 3.  Defaults Upon Senior Securities: None

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

Item 5. Other Information:  During April,  2006,  MicroCor extended the time for
completion  of FDA  clearance  of the  hematocrit  prototype  by  Wescor  for an
additional  six  months  pursuant  to  Section  5.3  of  the  Joint  Development
Agreement.

Item 6.   Exhibits:

(31.1) Sarbanes-Oxley Section 302 Certification - Ralph Henson

(31.2) Sarbanes- Oxley Section 302 Certification- Richard Bruggeman

(32.1) Sarbanes-Oxley Section 906
                                  Certification

 Reports on Form 8-K: None




                                       11

<PAGE>




                                   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


                            /s/ Ralph Henson
                            ----------------
                            By Ralph Henson, President


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


Date:  May 12, 2006





















                                       12


<PAGE>




                EXHIBIT INDEX - INMEDICA DEVELOPMENT CORPORATION
                           FORM 10QSB - MARCH 31, 2006

EXHIBIT NUMBER            DESCRIPTION

      31.1                Section 302 Certifications of Ralph Henson

      31.2                Section 302 Certifications of Richard Bruggeman

      32.2                Sarbanes-Oxley Section 906 Certification





                                       13