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 June 30, 2003

                           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
 incorporation or organization)                         Identification Number)

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

Registrant's telephone number including area code  (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  preceding 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 August 12, 2003 was 15,982,993 shares.

                                       1
<PAGE>



PART I - FINANCIAL INFORMATION

Item 1.  Financial Statements

                 INMEDICA DEVELOPMENT CORPORATION AND SUBSIDIARY
                           CONSOLIDATED BALANCE SHEET



                                     ASSETS

                                       As of
                                      June 30,
                                        2003
                                    ------------
                                    (Unaudited)

CURRENT ASSETS:
   Cash                             $     20,117
   Securities available for sale               1
   Prepaid expenses and other                200
                                    ------------

        Total current assets              20,318

EQUIPMENT AND FURNITURE,
   at cost, less accumulated
   depreciation of $253,211                  663
                                    ------------

        Total assets                $     20,981
                                    ============













                 See notes to consolidated financial statements.

                                       2
<PAGE>


                 INMEDICA DEVELOPMENT CORPORATION AND SUBSIDIARY
                      CONSOLIDATED BALANCE SHEET(CONTINUED)

                      LIABILITIES AND STOCKHOLDERS' EQUITY

                                                As Of
                                               June 30,
                                                 2003
                                             ----------
                                             (Unaudited)


CURRENT LIABILITIES:
   Related party consulting fees payable     $   54,000
   Accounts payable                               1,000
   Preferred stock dividend payable              15,132
                                             ----------

        Total current liabilities                70,132
                                             ----------

MINORITY INTEREST                               121,843
                                             ----------

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
    outstanding                                 94,573
   Common stock, $.001 par value;
    40,000,000 shares authorized,
    15,982,993 issued and outstanding           15,983
   Additional paid-in capital                8,024,260
   Accumulated deficit                      (8,305,810)
                                            ----------

        Total stockholders'
         equity                               (170,994)
                                            ----------
        Total liabilities and
         stockholders' equity               $   20,981
                                            ==========


                 See notes to consolidated financial statements.

                                       3
<PAGE>


                 INMEDICA DEVELOPMENT CORPORATION AND SUBSIDIARY
                      CONSOLIDATED STATEMENTS OF OPERATIONS

                                  For the Three            For the Six
                                  Months Ended             Months Ended

                                    June 30,                 June 30,
                              ----------------------  -----------------------
                                2003        2002         2003        2002
                              ---------- -----------  ----------- -----------
                                    (Unaudited) (Unaudited)

TOTAL ROYALTY REVENUES        $         -  $        - $         -  $       -
                              -----------  ---------- -----------  ---------

OPERATING EXPENSES:
  General and

    administrative                 21,165     72,417       83,262    164,345
  Research and
    development                     4,884      2,537        6,725      5,406
                              -----------  ---------- -----------  ---------

  Total operating expenses         26,049     74,954       89,987    169,751
                              ------------ ---------- ------------ ---------


LOSS FROM OPERATIONS              (26,049)   (74,954)     (89,987)  (169,751)
                              -----------  ---------  -----------  ---------

OTHER INCOME (EXPENSE):
  Other income, net                    19         36           39         75
  Interest expense                    -         (161)          -        (402)
                              -----------  ---------  -----------  ---------

  Total other expense, net             19       (125)          39       (327)
                              -----------  ---------  -----------  ---------


LOSS BEFORE MINORITY INTEREST     (26,030)   (75,079)     (89,948)  (170,078)

MINORITY INTEREST                   2,364     10,503       11,964     20,918
                              ----------- ----------  ----------- ----------

NET LOSS                          (23,666)   (64,576)     (77,984)  (149,160)

PREFERRED STOCK DIVIDENDS          (1,892)    (1,892)      (3,783)    (3,783)
                              ----------- ----------  ----------- ----------

NET LOSS APPLICABLE TO
  COMMON STOCKHOLDERS             (25,558)   (66,468)     (81,767)  (152,943)

NET LOSS PER COMMON SHARE
  (BASIC AND DILUTED)         $          -          -  $      (.01) $    (.01)
                              ============ ==========  =========== ==========

Weighed average number
  of common shares
  outstanding                   15,982,993 15,984,613   15,982,993 15,984,613
                              ============ ==========  =========== ===========

                 See notes to consolidated financial statements.

                                       4
<PAGE>


                 INMEDICA DEVELOPMENT CORPORATION AND SUBSIDIARY
                      CONSOLIDATED STATEMENTS OF CASH FLOWS

                                           For the Six Months Ended
                                                   June 30,
                                            ------------------------
                                             2003             2002
                                            -----            -------
                                                  (Unaudited)

CASH FLOWS FROM OPERATING ACTIVITIES:

  Net loss                               $   (77,984)    $  (149,160)
  Adjustments to reconcile net
    loss to net cash used in
    operating activities-
      Depreciation and amortization               88              43
      Issuance of stock for
          consulting fees                         -               -
      Minority interest in losses            (11,964)        (20,918)
      Change in assets and liabilities-
        Prepaid expenses and other             1,250          11,248
        Related party consulting fee payable  12,000          12,000
        Accounts payable                        (704)         (1,329)
        Accrued payroll                           -           (4,292)
        Note payable                              -          (10,000)
                                           ---------       ---------

          Net cash used in
           operating activities              (77,314)       (162,408)
                                           ---------       ---------

CASH FLOWS USED IN INVESTING ACTIVITIES -
  Purchase of equipment and furniture             -             (884)
                                           ---------        --------











             See notes to consolidated financial statements.

                                      5
<PAGE>


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

                                            For the Six Months Ended
                                            ------------------------
                                             2003             2002
                                            -----            -------
                                                    (Unaudited)

CASH FLOWS FROM FINANCING ACTIVITIES:

 Proceeds from stock subscription receivable       -      50,000
 Proceeds from note receivable from Chi Lin        -      50,000
 Proceeds from borrowing on notes payable
    and notes payable to related parties           -          -
 Preferred stock dividend                          -      (3,783)
 Payments on related-party notes
    payable and interest                           -          -
                                            ---------    ---------

       Net cash provided by
         financing activities                      -       96,217
                                           ----------  ----------



NET INCREASE (DECREASE)IN CASH               (77,314)    (67,075)

CASH AT BEGINNING OF THE PERIOD               97,431      106,739
                                            --------    ---------

CASH AT END OF THE PERIOD                   $ 20,117      $39,664
                                            =========    ========


                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  financial  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  net losses of $77,984  and  $149,160  for the six month
periods ended June 30, 2003 and 2002, respectively, and negative cash flows from
operations of $77,314 and $162,408 for the six month periods ended June 30, 2003
and 2002,  respectively.  As of June 30,  2003,  the Company had an  accumulated
deficit of $8,305,810. At June 30, 2003, the Company had a stockholders' deficit
of $(170,994).  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 pursuing
additional  strategic  alliances  and  licensing  agreements,  and if warranted,
preparation  for the clinical  trials that will be required for FDA approval for
the medical products that are currently under  development,  pursuant to the Chi
Lin development agreement, utilizing the Non-invasive Hematocrit Technology.

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, 2002.

                                       7
<PAGE>

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
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.

                                       8
<PAGE>



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

Plan of Operation.

        The remaining funds of the Company are expected to satisfy the Company's
        cash  needs  only  through  the  end of  September,  2003.  The  Company
        continues  to search  for  strategic  partners  or sources of funding in
        order to continue  future  research and  development  on its  hematocrit
        technology  and  pay   administrative   costs.   Ongoing   research  and
        development has been funded by Chi Lin Technologies,  Inc., although the
        Company continues to seek funding from other sources. The Company has no
        present assurance that additional  funding will be obtained.  If funding
        should be obtained, the Company plans to use those funds to complete the
        ongoing work on the engineering  prototype  currently under  development
        and to test the  prototype  in  order  to  assess  its  performance.  If
        satisfactory  test results are  obtained,  the Company then plans to use
        the   engineering   prototype   as  a  model  to  produce  a  number  of
        manufacturing  prototypes  which  could be used in  clinical  trials and
        submissions  that the  Company  anticipates  would be required to obtain
        approval  for  marketing  by  the  FDA.  The  Company  currently  has no
        commitments  for  funding to  complete  this  work.  The  Company's  two
        employees  continue to work for the Company and their salaries are being
        accrued.

Liquidity and Capital Resources.

    During the  three  and six  month  periods  ended  June 30,  2003  liquidity
        resulted from the sale of stock by InMedica and its subsidiary  MicroCor
        pursuant to the Stock Purchase  Agreement dated May 10, 2001. As of June
        30, 2003  InMedica and MicroCor had each  received  payments of $500,000
        from  Chi Lin and Chi  Lin's  stock  purchase  obligation  has now  been
        satisfied.  The funds  generated from the sale of stock in 2001 were the
        sole source of the  Company's  cash flow and are  sufficient to meet the
        Company's  operating expenses only through September 30, 2003. While the
        Company has in the past borrowed from  affiliates,  any borrowing in the
        future from affiliates,  if available,  is not expected to be sufficient
        to provide future liquidity needs, retire obligations and fund continued
        research and development.

                                       9
<PAGE>

Results of Operations.

    InMedica  incurred net losses  during the three and six month  periods ended
June 30, 2003 and 2002. The Company had an accumulated  deficit of $8,305,810 as
of June 30, 2003. No revenues from  operations  are expected in the  foreseeable
future.  The net loss for the six month period ended June 30, 2003  decreased to
$77,984  compared  to the net loss of  $149,160  for 2002,  primarily  due to an
decrease in total  operating  expenses  of  $79,764.  The net loss for the three
month period ended June 30, 2003  decreased to $23,666  compared to the net loss
of $64,576 for the three months ended June 30, 2002, primarily due to a decrease
in total operating  expenses of $48,905.  The decrease in operating expenses for
both  comparative  periods is the result of reduced  insurance  costs,  payroll,
accounting and legal fees.

Item 3:   CONTROLS AND PROCEDURES

        The Company's Chief Executive  Officer and Chief Financial  Officer have
        concluded,  based on an evaluation conducted within 90 days prior to the
        filing date of this  Quarterly  Report on Form 10-QSB that the Company's
        disclosure controls and procedures (as defined in Exchange Act Rules 13a
        - 14(c) and 15d - 14(c)) have  functioned  effectively  so as to provide
        those officers the information  necessary to evaluate whether:  (i) this
        Quarterly  Report on Form  10-QSB  contains  any untrue  statement  of a
        material  fact or omits to state a material  fact  necessary to make the
        statements  made,  in  light  of  the  circumstances  under  which  such
        statements were made, not misleading, with respect to the period covered
        by this  Quarterly  Report  on  Form  10-QSB,  and  (ii)  the  financial
        statements,  and other financial  information included in this Quarterly
        Report on Form  10-QSB,  fairly  present in all  material  respects  the
        financial condition, results of operations and cash flows of the Company
        as of,  and for,  the  periods  presented  therein.  There  have been no
        significant  changes  in the  Company's  internal  controls  or in other
        factors that could significantly  affect internal controls subsequent to
        the  evaluation  date,  nor any  significant  deficiencies  or  material
        weaknesses in such controls requiring  corrective  actions. As a result,
        no corrective actions were required or taken.

                                       10
<PAGE>



     PART II - OTHER INFORMATION

Item 1.   Legal Proceedings:  None

Item 2.   Changes in Securities and Use of Proceeds: 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: See Exhibit Index.

                                       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
                                --------------------------
Date:  August 12, 2003          By Richard Bruggeman, Treasurer
-----------------------






















                                       12

<PAGE>


        EXHIBIT INDEX - INMEDICA DEVELOPMENT CORPORATION
                   FORM 10QSB - JUNE 30, 2003

EXHIBIT NUMBER    DESCRIPTION

     31.1 Section 302 Certifications of Ralph Henson

     31.2 Section 302 Certifications of Richard Bruggeman

     32.1 Sarbanes-Oxley Section 906 Certification of Ralph Henson

     32.2 Sarbanes-Oxley Section 906 Certification of Richard Bruggeman

                                       13