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, 2004

                           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 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 1, 2004 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
                                             March 31,
                                              2004
                                           (Unaudited)
                                           -----------

        CURRENT ASSETS:
           Cash                             $    1,407
           Securities available for sale             1
           Prepaid expenses and other              200

                                            ----------
                Total current assets             1,608


        EQUIPMENT AND FURNITURE,
          at cost, less accumulated
          depreciation of $253,343                 531

                                            ----------


                Total assets                $    2,139
                                            ==========






















            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,
                                                            2004
                                                          ------
                                                        (Unaudited)

        CURRENT LIABILITIES:
           Related party consulting fees payable       $    72,000
           Accrued expenses                                 54,912
           Note Payable                                     42,772
           Accounts payable                                 19,971
           Preferred stock dividend payable                 20,806
                                                      ------------

                Total current liabilities                  210,461
                                                       -----------

            MINORITY INTEREST                               98,651
                                                       -----------

        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,
            15,982,993 issued and outstanding               15,983
           Additional paid-in capital                    8,024,260
           Accumulated deficit                          (8,441,789)
                                                        ----------

                Total stockholders equity                 (306,973)
                                                        ----------
                Total liabilities and
                 stockholders' equity                   $   2,139
                                                        ==========











            See notes to consolidated financial statements


                                       3
<PAGE>

                 INMEDICA DEVELOPMENT CORPORATION AND SUBSIDIARY
                      CONSOLIDATED STATEMENTS OF OPERATIONS

                                               For the Three
                                               Months Ended
                                                 March 31,
                                             2004        2003
                                           --------    --------
                                                (Unaudited)
          TOTAL ROYALTY REVENUES            $   -0-         -0-
                                           --------    --------

          OPERATING EXPENSES:
            General and
              administrative                 40,810      62,097
            Research and
             development                      3,756       1,841
                                           --------    --------
              Total operating expenses       44,566      63,938
                                           --------    --------

          LOSS FROM OPERATIONS              (44,566)    (63,938)
                                           --------    --------

          OTHER INCOME:
            Other income, net                   -0-          20
                                           --------    --------
             Total other income, net            -0-          20
                                           --------    --------

          LOSS BEFORE MINORITY INTEREST     (44,566)    (63,918)

          MINORITY INTEREST                   5,430       9,600
                                           --------    --------
          NET LOSS                          (39,136)    (54,318)

          PREFERRED STOCK DIVIDENDS          (1,892)     (1,891)
                                           --------    --------

          NET LOSS APPLICABLE TO
           COMMON STOCKHOLDERS             $(41,028) $ (56,209)
                                           ========   ========
          NET LOSS PER COMMON SHARE
            (BASIC AND DILUTED)            $   (.00)  $   (.00)
                                           ========   ========

          Weighted average number
          of common shares outstanding   15,982,993    15,982,993
                                           =========  =========






            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,
                                                    2003       2003
                                                  --------   --------
                                                     (Unaudited)
     CASH FLOWS FROM OPERATING ACTIVITIES:

       Net loss                                  $ (39,136) $( 54,318)
       Adjustments to reconcile net
         loss to net cash used in
         operating activities-
           Depreciation and amortization                44         44
           Minority interest in losses              (5,430)    (9,600)
           Change in assets and liabilities
             Prepaid expenses and other                -0-        625
             Consulting fee payable to
               related party                         6,000      6,000
             Accounts payable                       (4,069)      (704)
                                                  --------   --------
                Net cash used in
                  operating activities             (42,591)   (57,953)
                                                  --------   --------

     CASH FLOWS USED IN INVESTING ACTIVITES:
       Purchase of equipment and furniture             -0-        -0-
                                                  --------   --------
                       Net cash used in investing
                         activities                    -0-        -0-
                                                  --------   --------

     CASH FLOWS FROM FINANCING ACTIVITIES:
       Preferred stock dividend                        -0-        -0-
             Note payable                           42,772        -0-
                                                  --------   --------
                Net cash used in financing
                  activities                        42,772        -0-
                                                  --------   --------















           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,
                                                      2004     2003
                                                   ---------- -------
                                                      (Unaudited)


   NET INCREASE (DECREASE) IN CASH                   181      (57,953)

   CASH AT BEGINNING OF PERIOD                     1,226       97,431
                                                 -------     --------

   CASH AT END OF PERIOD                        $  1,407      $39,478
                                                 =======      =======






































          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. (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 $39,136 and $54,318 for the three month  periods  ended
March 31, 2004 and 2003, respectively, and negative cash flow from operations of
$42,591 and $57,953 for the three month period ended march 31, 2004 and 2003. As
of March 31, 2004,  the Company had an  accumulated  deficit of  $8,441,789.  At
March 31, 2004, the Company had a stockholders'  equity (deficit) of $(306,973).
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 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, 2003.

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.







                                       7
<PAGE>

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

        Liquidity and Capital Resources. During the twelve months ended December
        31, 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 March 31, 2004  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 were  sufficient  to meet the Company's
        operating expenses only through December 31, 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.

        During the three  months  ended  March 31, 2004 some  limited  operating
        funds  were   provided  by  cash   advances   from  an  entity  that  is
        investigating participation in development of the Hematocrit technology.
        However at this time there is no definitive  agreement  for  development
        and the entity may withdraw from further  participation at any time. The
        Company  will  continue to look for other  sources of funding  pending a
        final decision by the entity regarding participation.

        Results of  Operations.  InMedica  incurred net losses  during the three
        month  period  ended  March  31,  2004  and  2003.  The  Company  had an
        accumulated deficit of $8,441,789 as of March 31, 2004. No revenues from
        operations are expected in the foreseeable  future. The net loss for the
        period  ended March 31, 2004  decreased  to $39,136  compared to the net
        loss of $54,318 for 2003 primarily due to a decrease in total  operating
        expenses of $19,372. The decrease in operating expenses 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


                                       8
<PAGE>

        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.
























                                       9
<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:
              None









                                       10
<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,  there-unto
duly authorized.

                            INMEDICA DEVELOPMENT CORPORATION
Dated: May 10, 2004
--------------------
                                By /s/ Ralph Henson
                                -------------------
                                Ralph Henson, CEO


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



































                                       11
<PAGE>

        EXHIBIT INDEX - INMEDICA DEVELOPMENT CORPORATION
                   FORM 10QSB - SEPTEMBER 30, 2002

EXHIBIT NUMBER             DESCRIPTION
                  31.1 Sarbanes-Oxley Section 302 Certification
                  31.2 Sarbanes-Oxley Section 302 Certification

                  32.1 Sarbanes-Oxley Section 906 Certification





















                                       12