1

                     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, 2000

                           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
                           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 11, 2000 was 8,735,899 shares.




                                       1
<PAGE>




PART I - FINANCIAL INFORMATION

Item 1.  Financial Statements

                 INMEDICA DEVELOPMENT CORPORATION AND SUBSIDIARY
                      CONDENSED CONSOLIDATED BALANCE SHEET


                              ASSETS
                              ------

                                               As of
                                          March 31, 2000
                                           (Unaudited)
                                           -----------

        CURRENT ASSETS:
           Cash                             $   12,058
           Prepaid expenses                     11,551
                                            ----------

                Total current assets            23,609

        EQUIPMENT AND FURNITURE,
          at cost, less accumulated
          depreciation of $252,435                 554

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


                Total assets                $   26,359
                                            ==========




            See notes to condensed consolidated financial statements.




                                       2
<PAGE>





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


                      LIABILITIES AND STOCKHOLDERS' DEFICIT

                                                          As of
                                                         March 31,
                                                           2000
                                                          ------
                                                       (Unaudited)

        CURRENT LIABILITIES:
           Consulting fee payable to
              related parties                          $   115,992
           Notes payable to

              related parties                              180,581
           Accounts payable                                 28,101
           Accrued payroll                                     792
           Notes payable                                    10,800
           Dividend payable                                  2,282


                Total current liabilities                  338,548
                                                        ----------

        STOCKHOLDERS' DEFICIT:
           Common stock, $.001 par value;
            20,000,000 shares authorized,
            8,735,899 issued and outstanding                 8,736
           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                    6,867,035
           Accumulated deficit                          (7,302,062)
                                                        ----------

                Total stockholders'
                 deficit                                  (312,189)
                                                        ----------
                Total liabilities and
                 stockholders' deficit                  $   26,359
                                                        ==========

            See notes to condensed consolidated financial statements.




                                       3
<PAGE>




                 INMEDICA DEVELOPMENT CORPORATION AND SUBSIDIARY
                 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS



                                               For the Three
                                               Months Ended
                                                 March 31,
                                             2000        1999
                                           --------   --------
                                                (Unaudited)
          TOTAL OPERATING REVENUES         $    -0-         -0-
                                           --------   --------


          OPERATING EXPENSES:
            General and

             administrative                  61,410      37,789
            Research and
             development                      4,061       2,002
                                           ---------      -----
              Total operating expenses       65,471      39,791
                                           ---------     ------

          LOSS FROM OPERATIONS              (65,471)    (39,791)
                                           ---------    -------

          OTHER INCOME (EXPENSE):
            Miscellaneous income                  4         146
            Interest expense                 (4,045)     (3,172)
                                           --------     -------

             Total other expense             (4,041)     (3,026)
                                           --------     -------

          NET LOSS                          (69,512)   ( 42,817)

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

          NET LOSS APPLICABLE TO
           COMMON SHARES                   $ (71,794) $( 45,099)
                                           ========== =========
          Net loss per common share
            (basic and diluted)            $   (.01)  $    (.01)
                                           ========   =========

          Weighted average number

            of common shares outstanding  8,735,899   8,660,899
                                          =========   ========

            See notes to condensed consolidated financial statements.




                                       4
<PAGE>





                 INMEDICA DEVELOPMENT CORPORATION AND SUBSIDIARY
                 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

                           INCREASE (DECREASE) IN CASH

                                  For the Three
                                  Months Ended

                                                      March 31,
                                                    2000        1999
                                               ----------- ----------
                                                     (Unaudited)

     CASH FLOWS FROM OPERATING ACTIVITIES:

       Net loss                                  $ (69,512) $( 42,817)
       Adjustments to reconcile net
         loss to net cash used in
         operating activities-
           Depreciation                                152        217
           Change in assets and liabilities-
             Decrease in royalties receivable       57,120     45,920
               Decrease in prepaid expenses          4,500      4,750
             Increase in consulting fee payable
               to related party                     10,000     12,999
             Decrease in accounts payable          (10,207)   (29,011)
             Decrease in accrued payroll              (164)      (276)
             Decrease in notes payable              (3,600)       -
             Increase in related-party
               payable                              23,769        -
                                                  --------    -------

               Net cash provided by (used in)
                  operating activities              12,058   ( 8,218)
                                                  ---------- --------

            See notes to condensed consolidated financial statements.




                                       5
<PAGE>






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

                           INCREASE (DECREASE) IN CASH

                                                      For the Three
                                                       Months Ended
                                                         March 31,
                                                     2000        1999
                                                   ---------- -------
                                                       (Unaudited)


   NET INCREASE (DECREASE) IN CASH                12,058      (10,500)

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

   CASH AT END OF PERIOD                        $ 12,058     $ 28,065
                                                 =======      =======




            See notes to condensed consolidated financial statements.




                                       6
<PAGE>






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, 2000 are
not  necessarily  indicative  of the results  that may be expected  for the year
ending  December 31, 2000. For further  information,  refer to the  consolidated
financial  statements  included in the Company's  Form 10-KSB for the year ended
December 31, 1999.

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
2000.  The Company  generated a net loss from  operations of $69,512  during the
period  ended  March  31,  2000 and as of March 31,  2000,  the  Company  had an
accumulated  deficit of  $7,302,062  and negative  working  capital of $314,939.
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. Management's operating plan includes
continuing  to search for  financing  alternatives,  including  the formation of
strategic alliances or partnerships to continue research and, if warranted,  the
manufacture  and sale of products  developed  from the  Non-Invasive  Hematocrit
Technology. However, at present, the Company has no commitments related to these
matters.




                                       7
<PAGE>





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

Liquidity and Capital Resources

     For the years ended  December 31, 1999 and 1998,  liquidity  was  generated
from royalty income received from Johnson and Johnson  Medical,  Inc.  ("JJMI").
This income is expected to terminate during 2000. InMedica continues to look for
other funding sources but as of the date of this filing,  it has no commitments.
Due to the Company's  revenue  recognition  policy,  no operating  revenues were
recognized  during  the three  months  ended  March 31,  2000 (See  "Results  of
Operations").

     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

     The Company's  revenue  recognition  policy requires sales information upon
which  royalties  are  calculated  to have been received from JJMI and that cash
receipts be assured prior to recording revenue. For that reason no revenues were
recognized  during the first  quarter of 2000,  although the Company  expects to
receive some  revenues  during 2000 from the JJMI  contract.  See  Liquidity and
Capital  Resources.  InMedica  has a  stockholders'  deficit of $ 312,189 and an
accumulated deficit of $7,302,062 as of March 31, 2000. In order for InMedica to
continue  research  and  development  activities,  it  will  require  additional
financing, for which it has no commitments.

     The loss from  operations  of $65,471 for the quarter  ended March 31, 2000
compared to $39,791 for the quarter  ended March 31, 1999  resulted from general
and  administrative  expenses  ($61,410) and research and  development  expenses
($4,061) 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 increased
compared  to the same  period of the prior  year,  primarily  due to  additional
employee expense.



                                       8
<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




                                       9
<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


Dated: May  12, 1999
--------------------
                                By /s/ Ralph Henson
                                -------------------
                                       Ralph Henson, CEO

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




                                       10
<PAGE>





                                    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