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, 2001

                           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 12, 2001 was 15,984,613 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, 2001
                                           (Unaudited)
                                           ------------

        CURRENT ASSETS:
           Cash                            $     2,454
           Prepaid expenses                      11,507
                                           ------------

                Total current assets             13,961

        EQUIPMENT AND FURNITURE,
          at cost, less accumulated
          depreciation of $252,935                   55

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


                Total assets               $     16,212
                                           ============




            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,
                                                          2001
                                                       -----------
                                                       (Unaudited)
        CURRENT LIABILITIES:
           Related party notes payable
              and accrued interest                         298,082
           Related party consulting fees
            payable and accrued interest               $   213,412
           Accounts payable                                 57,375
           Note payable and accrued interest                11,610
           Preferred stock dividends payable                10,705
           Accrued payroll                                     792

                Total current liabilities                  591,976
                                                       -----------
        STOCKHOLDERS' DEFICIT:
           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;
            20,000,000 shares authorized,
            8,847,409 issued and outstanding                 8,847
           Additional paid-in capital                    6,925,019
           Accumulated deficit                          (7,604,203)
                                                       -----------
                Total stockholders'
                 deficit                                  (575,764)
                                                       -----------
                Total liabilities and
                 stockholders' deficit                 $    16,212
                                                       ===========



            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,
                                              2001        2000
                                           ----------  -----------
                                                (Unaudited)

          ROYALTY REVENUES                 $      640         -
                                           ----------  -----------
          OPERATING EXPENSES:
            General and
             administrative                    60,026       61,410
            Research and
             development                        5,234        4,061
                                           ----------  -----------
              Total operating expenses         65,260       65,471
                                           ----------  -----------
          LOSS FROM OPERATIONS                (64,620)     (65,471)
                                           ----------  -----------
          OTHER INCOME (EXPENSE):
            Miscellaneous income                    3            4
            Interest expense                  (10,362)      (4,045)
                                           ----------  -----------

             Total other expense              (10,359)      (4,041)
                                           ----------  -----------
          NET LOSS                            (74,979)     (69,512)

          PREFERRED STOCK DIVIDEND             (1,891)      (2,282)
                                           ----------  -----------
          NET LOSS APPLICABLE TO
           COMMON SHARES                   $  (76,870)     (71,794)
                                           ==========  ===========
          Net loss per common share
            (basic and diluted)            $     (.01) $      (.01)
                                           ==========  ===========
          Weighted average number

            of common shares outstanding    8,847,409    8,735,899
                                           ==========  ===========



            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,
                                                          2001         2000
                                                       -----------  ----------
                                                             (Unaudited)

     CASH FLOWS FROM OPERATING ACTIVITIES:

       Net loss                                        $   (74,979) $  (69,512)
       Adjustments to reconcile net
         loss to net cash used in
         operating activities-
           Depreciation                                         16         152
           Change in assets and liabilities-
             Decrease in royalties receivable                    -      57,120
             Decrease in prepaid expenses                    4,500       4,500
             Increase in consulting fee payable
               to related party                             18,409      10,000
             Decrease in accounts payable                   (8,083)    (10,207)
             Decrease in accrued payroll                    (6,983)       (164)
             Decrease in notes payable                      (3,200)     (3,600)
             Increase in related-party
               payable                                       5,678      23,769
                                                       -----------  ----------

               Net cash (used in) provided by
                  operating activities                     (64,642)     12,058
                                                       -----------  ----------
       CASH FLOWS FROM FINANCING ACTIVITIES:
         Proceeds from borrowings on note payable
         and notes payable to related parties               58,000           -
                                                       -----------  ----------

         Net Cash provided by financing activites           58,000           -
                                                       -----------  ----------

       NET (DECREASE) INCREASE  IN CASH                     (6,642)     12,058

       CASH AT BEGINNING OF PERIOD                           9,096        --
                                                       -----------  ----------
       CASH AT END OF PERIOD                           $     2,454  $   12,058
                                                       ===========  ==========


            See notes to condensed consolidated financial statements.

                                       5
<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 then 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, 2001 are
not  necessarily  indicative  of the results  that may be expected  for the year
ending  December 31, 2001. For further  information,  refer to the  consolidated
financial  statements  included in the Company's  Form 10-KSB for the year ended
December 31, 2000.

Royalties  received  from the Johnson and Johnson  agreement  terminated  during
2000.  The Company  generated a net loss from  operations of $74,979  during the
period  ended  March  31,  2001 and as of March 31,  2001,  the  Company  had an
accumulated  deficit of  $7,604,203  and negative  working  capital of $578,015.
During the quarter ended March 31, 2001,  the Company was funded  primarily from
loans from related parties.  The Company's continued existence is dependent upon
its ability to achieve a viable operating plan. The Company will be reliant upon
funding from the Chi Lin Technologies Co. Ltd. to operate during 2001.

Note B -- Subsequent Events

         Employment Agreements.  InMedica Development Corporation ("InMedica" or
the "Company") executed  employment  contracts with its Chief Executive Officer,
Ralph Henson, and its Chief Financial Officer,  Richard Bruggeman,  on April 25,
2001. Mr. Henson's contract  reaffirms the provisions of his prior contract (See
8-K of the  Registrant  dated  December 1, 1999) except  paragraphs  one and two
thereof which are amended and restated in their entirety to provide for his full
time employment for the period April 1, 2001 until March 31, 2003.  Compensation
payable  for his  services  during  the  period is $7,000  per month  during the
remainder  of 2001 and  $8,000  per  month  for the  balance  of the term of the
contract.  Mr.  Henson is to continue as a member of the Board of  Directors  of
InMedica. Mr. Henson was also separately granted the right to earn a finders fee
of up to $15,000 for raising up to $1,000,000 for the Company.  The fee is to be
paid in restricted  common stock of the Company valued at $.12 per share,  for a
maximum of 125,000 shares. Mr.  Bruggeman's  contract provides for his part time
employment  as the Chief  Financial  Officer of the  Company  from April 1, 2001
until March 31, 2003. He has the option to increase the  employment to full time
if warranted by the Company's  business,  at a  compensation  to be  negotiated.
Compensation  under the contract is $3,500 per month beginning April 1, 2001 for
the balance of the year 2001 and  thereafter  $4,000 per month for the remaining
term of the contract.

         Settlement of Loans and Other  Payables.  The Company has also executed
two  promissory  notes dated April 26, 2001,  payable to its Chairman,  Larry E.
Clark. The first note documents a series of existing loans from Mr. Clark to the
Company of $262,250 principal and $26,899.23  accrued interest.  The note is due
in three payments as follows: on or before May 31, 2001, $150,000,  on or before
July 15, 2001, $75,000 and the balance on or before October 15, 2001. The second
note  documents  an  additional  loan from Mr.  Clark to the  Company of $10,000
principal and  $1,331.74  accrued  interest.  The note is due in two payments as
follows: on or before May 31, 2001, $5,000 and the balance on or before July 15,
2001. Accrued interest is included in the notes through May 31, 2001. Thereafter
interest  accrues at 10% per annum.  Effective  April 25, 2001, the Company paid
Mr.  Clark for accrued  consulting  fees and accrued  interest by issuing to his
family trust 1,219,025  restricted  common shares of InMedica in satisfaction of
$123,992  consulting fees payable and $22,291 accrued  interest on the fees. The
Company also paid Mr. Bruggeman for accrued consulting fees and accrued interest
by issuing to him 464,975  restricted  common shares of InMedica in satisfaction
of $52,000  consulting fees payable and $3,797  interest.  Shares were issued at
$.12 per share.

                                       6
<PAGE>

         Stock Purchase  Agreement and Development,  Licensing and Manufacturing
Agreement.  On May 10, 2001 the Company entered into a Stock Purchase  Agreement
and Development,  Licensing and Manufacturing  Agreement with Chi Lin Technology
Co. Ltd.  ("Chi  Lin")of the Republic of China  (Taiwan).  Pursuant to the Stock
Purchase Agreement, the Company issued 5,328,204 shares of its restricted common
stock to Chi Lin and caused its subsidiary,  MicroCor, Inc. ("MicroCor")to issue
29,420  shares  of its  restricted  common  stock  to Chi Lin.  Following  these
transactions,  Chi Lin owned 33.3% of InMedica and 20% of MicorCor.  The Company
has also issued  125,000  restricted  shares of common  stock to Ralph Henson in
connection with this transaction as payment of a finders fee.

         In  consideration  of the stock  issuances,  Chi Lin gave  InMedica its
Promissory  Notes  committing  to pay  InMedica and MicroCor a total of $500,000
each according to the following schedule:  $150,000 to each company on or before
May 31, 2001, $75,000 to each company on or before July 1, 2001, $75,000 to each
company on or before  October  31,  2001,  $50,000 to each  company on or before
January 1, 2002,  $50,000 to each company on or before April 1, 2002, $50,000 to
each  company on or before July 1, 2002 and $50,000 to each company on or before
October 1, 2002. Chi Lin was also granted  anti-dilution rights permitting it to
purchase additional shares to maintain its one third percentage ownership in the
event InMedica issued additional  shares.  Chi Lin also has the right to receive
additional  shares  to  maintain  its  percentage  ownership  in the  event  any
outstanding options are exercised.  The agreement also provides that Chi Lin has
the right to nominate two of five directors on the board of directors.  InMedica
may not  increase  the size of the  board to more than  five  without  the prior
consent of Chi Lin.

         The Company also simultaneously  entered into a Development,  Licensing
and Manufacturing  Agreement with Chi Lin pursuant to which InMedica granted Chi
Lin a  world-wide  license  to develop  and  manufacture  products  based on the
hematocrit  technology.  The primary product to be developed is a device capable
of  hematocrit  measurement.  The  agreement  also grants Chi Lin the  exclusive
license to distribute the products in Australia,  New Zealand, and the countries
of Asia (excluding Russia and the Middle East).  InMedica retained  distribution
rights in other areas of the world.



                                       7
<PAGE>

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

Liquidity and Capital Resources

For the  quarters  ended  March  31,  2000 and  March 31,  2001,  liquidity  was
generated  primarily  from  borrowing  from  affiliates.  Royalty income has now
terminated.  On May 10, 2001 the Company entered into a Stock Purchase Agreement
with Chi Lin Technology  Co. Ltd. ("Chi Lin")of the Republic of China  (Taiwan).
Pursuant to the Stock Purchase Agreement, the Company issued 5,328,204 shares of
its restricted common stock to Chi Lin and caused its subsidiary, MicroCor, Inc.
("MicroCor")to issue 29,420 shares of its restricted common stock to Chi Lin. In
consideration of the stock issuances, Chi Lin gave InMedica its Promissory Notes
committing  to pay InMedica and MicroCor a total of $500,000  each  according to
the  following  schedule:  $150,000 to each  company on or before May 31,  2001,
$75,000 to each company on or before July 1, 2001, $75,000 to each company on or
before  October 31, 2001,  $50,000 to each company on or before January 1, 2002,
$50,000 to each company on or before  April 1, 2002,  $50,000 to each company on
or before July 1, 2002 and $50,000 to each company on or before October 1, 2002.
The Company is dependent  upon receipt of these  payments to continue to operate
and retire  obligations  as they come due. See also Part II "Other  Information"
Item 5 for further information regarding obligations to employees and retirement
of accrued  obligations to employees and related party loans.  These obligations
have been funded by issuance of  restricted  common  stock or are expected to be
funded from payments received from Chi Lin pursuant to the promissory notes.

Results of Operations

During 2000, the Company's revenue recognition policy required sales information
upon  which  royalties  were  calculated  to have  been  received  and that cash
receipts be assured prior to recording revenue. For that reason no revenues were
recognized  during the first quarter of 2000.  During the first quarter of 2001,
all material  royalty  revenues  had  terminated.  InMedica has a  stockholders'
deficit of $575,764 and an  accumulated  deficit of  $7,604,203  as of March 31,
2001.  InMedica  is  dependent  upon  successful   completion  of  research  and
development  and  manufacturing  by Chi  Lin  Technologies  Co.  Ltd.  and  upon
successful  marketing of its  hematocrit  device before it may expect to receive
revenues from operations.

The loss from  operations  of  $64,620  for the  quarter  ended  March 31,  2001
compared to $65,741 for the quarter  ended March 31, 2000  resulted from general
and   administrative   expenses   ($60,026)   and   research   and   development
expenses($5,234)  being  incurred while at the same time there were no revenues.
Research  and  development  expense  was minimal as the  termination  of royalty
income  limited  available cash during the quarter.  General and  administrative
expense remained  essentially  constant compared to the same period of the prior
year.

                                       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:

         See Note B - "Subsequent Events"

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

         Form  8-K:  The  Company  filed a report  on Form  8-K on May 10,  2001
reporting  the  Employment  Agreements  and the  Settlement  of Loans  and Other
Payables referred to in Note B - "Subsequent Events".

                                        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  14, 2001
--------------------
                                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              10               Stock Purchase Agreement between
                                   InMedica Development Corporation and
                                   Chi Lin Technology Co. Ltd. dated
                                   May 10, 2001

   2              10               Development, Licensing and
                                   Manufacturing Agreement between
                                   InMedica Development Corporation and
                                   Chi Lin Technolgy Co. Ltd. dated May
                                   10, 2001.

                                       11
<PAGE>