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 September 30, 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 Identification
 incorporation or organization)                              Number)

                   825 N. 300 West, 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

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<PAGE>

The number of shares outstanding of the registrant's only class of common stock,
par value $.001 per share, as of November 1, 2000 was 8,835,899 shares.

PART I - FINANCIAL INFORMATION

Item 1.  Financial Statements

                 INMEDICA DEVELOPMENT CORPORATION AND SUBSIDIARY
                      CONDENSED CONSOLIDATED BALANCE SHEET

                                     ASSETS

                                            As of September 30,
                                                   2000
                                               (Unaudited)

CURRENT ASSETS:
   Cash                                       $     10,367
   Prepaid expenses                                  2,551
                                              ------------

        Total current assets                        12,918

EQUIPMENT AND FURNITURE,
   at cost, less accumulated
   depreciation of $252,587                            250


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

        Total assets                          $     15,364
                                              ============

            See notes to condensed consolidated financial statements.

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


                      LIABILITIES AND STOCKHOLDERS' DEFICIT

                                             As of September 30,
                                                   2000
                                                (Unaudited)


CURRENT LIABILITIES:
   Notes payable to related parties           $    189,183
   Consulting fee payable to
    related parties                                147,992
   Accrued payroll                                     792
   Note payable                                     13,500
   Accounts payable                                 40,197
   Dividends payable                                 6,846
                                              ------------

        Total current liabilities                  398,510
                                              ------------


STOCKHOLDERS' DEFICIT:
   Common stock, $.001 par value;
    20,000,000 shares authorized,
    8,835,899 issued and outstanding                 8,836
    Preferred  shares,   10,000,000
    shares  authorized;  Series  A
    convertible preferred   stock,
    8%  cumulative,   $4.50  par  value,
    1,000,000  shares

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   designated, 25,356 shares
   outstanding                                     114,102
   Additional paid-in capital                    6,896,935
   Accumulated deficit                          (7,403,019)
                                              ------------

         Total stockholders'
         deficit                                (  383,146)
                                              ------------
         Total liabilities and
         stockholders' deficit                  $   15,364
                                              ============


            See notes to condensed consolidated financial statements.

                                       4
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                 INMEDICA DEVELOPMENT CORPORATION AND SUBSIDIARY
                 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

                                     For the Three            For the Nine
                                     Months Ended             Months Ended
                                     September 30,            September 30,
                                 ----------------------  -----------------------
                                   2000        1999         2000        1999
                                 ---------- -----------  ----------- -----------
                                       (Unaudited)              (Unaudited)

ROYALTY REVENUES                 $  15,680   $   16,800  $   46,880   $  44,320
                                 ---------   ----------  ----------   ---------


OPERATING EXPENSES:
  General and
  administrative                    65,511       28,046     173,025     103,174
  Research and
  development                        5,738       10,689      25,561      50,851
                                 ---------   ----------  ----------   ---------
  Total operating expenses          71,249       38,735     198,586     154,025
                                 ---------   ----------  ----------   ---------


LOSS FROM OPERATIONS               (55,569)     (21,935)   (151,706)   (109,705)
                                 ---------   ----------  ----------   ---------


OTHER (EXPENSE) INCOME:
  Miscellaneous Income                  --          746          --       4,040
  Interest income                        3            4          13         218
  Interest expense                  (6,093)      (3,242)    (14,212)     (9,899)
                                 ---------   ----------  ----------   ---------
  Total other expense               (6,090)     ( 2,492)    (14,199)     (5,641)
                                 ---------   ----------  ----------   ---------


NET LOSS                           (61,659)     (24,427)   (165,905)   (115,346)
PREFERRED STOCK DIVIDENDS          ( 2,282)      (2,283)     (6,846)     (6,847)
                                 ---------   ----------  ----------   ---------

NET LOSS APPLICABLE
TO COMMON SHARES                 $ (63,941)  $  (26,710) $ (172,751)  $(122,193)
                                 =========   ==========  ==========   =========
Net loss per common sha
  (basic and diluted)            $    (.01)  $     (.00) $     (.02)  $    (.01)
                                 =========   ==========  ==========   =========
Weighted average number
  of common shares
  outstanding                    8,835,899    8,660,899   8,769,965   8,660,899
                                 =========   ==========  ==========   =========



            See notes to condensed consolidated financial statements.

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                 INMEDICA DEVELOPMENT CORPORATION AND SUBSIDIARY
                 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

                                DECREASE IN CASH

                                                      For the Nine Months Ended
                                                             September 30,
                                                         2000             1999
                                                        ------           ------
                                                              (Unaudited)
CASH FLOWS FROM OPERATING ACTIVITIES:

Net loss                                            $ (165,905)      $ (115,346)
Adjustments to reconcile net
  loss to net cash used in
  operating activities-
  Depreciation                                             456              649
  Change in assets and liabilities-
  Decrease in royalties receivable                      57,120           45,920
  Decrease in prepaid expenses                          13,500           14,250
  Increase in consulting fees payable
  to related party                                      42,000           46,997
  Increase (decrease)in accounts
  payable                                                1,889          (29,098)
  Decrease in accrued payroll                             (164)            (276)
  Decrease in note payable                              (1,462)              --

         Net cash used in
         operating activities                            52566          (36,904)
                                                    ----------       ----------


            See notes to condensed consolidated financial statements.

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<PAGE>

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

                                                       For the Nine Months Ended
                                                              September 30,
                                                         2000             1999
                                                       ------            ------
                                                              (Unaudited)

CASH FLOWS FROM FINANCING ACTIVITIES:

 Sale of common stock                                   30,000               --
 Proceeds from borrowings on notes
 payable to related parties                             32,371           11,250
 Principal payments on notes payable                      (900)              --
 Preferred stock dividends paid                             --           (6,847)

         Net cash provided from
         financing activities                           61,471           (4,403)
                                                    ----------       ----------


NET INCREASE (DECREASE) IN CASH                         10,367          (32,501)

CASH AT BEGINNING OF THE PERIOD                             --           38,565
                                                    ----------       ----------
CASH AT END OF THE PERIOD                           $   10,367       $    6,064
                                                    ==========       ==========


            See notes to condensed consolidated financial statements.

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<PAGE>

                 INMEDICA DEVELOPMENT CORPORATION AND SUBSIDIARY

        NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Note 1-Basis of Presentation

The accompanying unaudited condensed consolidated financial statements have been
prepared in accordance  with  accounting  principles  generally  accepted in the
United States 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 accounting  principles  generally
accepted  in  the  United  States  for  complete  financial  statements.   These
consolidated statements include the accounts of InMedica Development Corporation
and its wholly  owned  subsidiary,  MicroCor,  Inc.  ("MicroCor").  All material
inter-company 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 and nine month periods ended September
30, 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 $55,569  during the
period ended September 30, 2000 and as of September 30, 2000, the Company had an
accumulated  deficit of  $7,403,019  and negative  working  capital of $385,592.
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.

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

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.

     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

     InMedica had a stockholders' deficit of $383,146 and an accumulated deficit
of  $7,403,019  as of  September  30,  2000.  In order for  InMedica to continue
research and development activities,  it will require additional financing,  for
which it has no commitments.

     The net loss of $165,905 for the nine months ended  September  30, 2000 was
$50,559  greater than for the nine months ended  September 30, 1999.  The change
resulted  because  general  and  administrative  expenses  increased  by $71,851
compared to the same period in 1999,  while  research and  development  expenses
decreased by $27,290. The increase in general and administrative expenses during
the nine months ended September 30, 2000 reflected  additional employee expense.
Research and development expense was restricted due to cash flow constraints.

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         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

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                                   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


                                            By: /s/ Ralph Henson
                                            -------------------------
                                                    Ralph Henson, CEO

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

Date: November 12, 2000

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                                                              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

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