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 September 30, 2006

                           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       (IRS 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[ ]

Indicate by check mark whether the  registrant is a shell company (as defined in
Rule 12b-2 of the Exchange Act). Yes [ ] No(1) [X]

The number of shares outstanding of the registrant's only class of common stock,
par value $.001 per share, as of November 9, 2006 was 18,629,493 shares.

-----------------------------
(1) - See Item 5.

<PAGE>

PART I - FINANCIAL INFORMATION

Item 1.  Financial Statements

                 INMEDICA DEVELOPMENT CORPORATION AND SUBSIDIARY
                           CONSOLIDATED BALANCE SHEET


                              ASSETS
                              ------
                                              As of
                                           September 30,
                                              2006
                                           (Unaudited)
                                           -----------

        CURRENT ASSETS:
           Cash & cash equivalents          $    5,336
           Prepaid expenses and other              200

                                            ----------
                Total current assets             5,536


        EQUIPMENT AND FURNITURE,
          at cost, less accumulated
          depreciation of $254,198               1,024

                                            ----------


                Total assets                $    6,560
                                            ==========






















            See notes to consolidated financial statements
<PAGE>

                 INMEDICA DEVELOPMENT CORPORATION AND SUBSIDIARY
                     CONSOLIDATED BALANCE SHEET (Continued)

                      LIABILITIES AND STOCKHOLDERS' EQUITY
                      -------------------------------------
                                                          As of
                                                      September 30,
                                                           2006
                                                          ------
                                                       (Unaudited)

        CURRENT LIABILITIES:
           Related party consulting fees payable       $    48,000
           Related party royalty payable                    23,333
           Note payable                                     45,950
           Accrued interest                                  1,584
           Preferred stock dividend payable                 39,720
                                                      ------------

                Total current liabilities                  158,587
                                                       -----------

            MINORITY INTEREST                              (70,008)
                                                       -----------

        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,
            18,629,493 issued and outstanding               18,629
           Additional paid-in capital                    8,426,839
           Accumulated deficit                          (8,622,060)
                                                        ----------

                Total stockholders equity                  (82,019)
                                                        ----------
                Total liabilities and
                 stockholders' equity                   $    6,560
                                                        ==========











                 See notes to consolidated financial statements
<PAGE>

                 INMEDICA DEVELOPMENT CORPORATION AND SUBSIDIARY
                      CONSOLIDATED STATEMENTS OF OPERATIONS

                                  For the Three            For the Nine
                                  Months Ended             Months Ended
                                  September 30,            September 30,
                              ----------------------- -----------------------
                                  2006        2005        2006        2005
                                     (Unaudited)             (Unaudited)

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

OPERATING EXPENSES:
  General and
    administrative                 48,618     47,042      151,196    161,535
  Research and
    development                       -        4,111          -        7,342
                              -----------  ---------- ------------ ---------

  Total operating expenses         48,618     51,153      151,196    168,877
                              -----------  ---------- ------------ ---------


LOSS FROM OPERATIONS              (48,618)   (51,153)    (151,196)  (168,877)
                              -----------  ---------  -----------  ---------

OTHER INCOME (EXPENSE):
  other income, net                  (480)     2,909         (817)     9,498
                              -----------  ---------  -----------  ----------

  Total other income, net            (480)     2,909         (817)     9,498
                              -----------  ---------- -----------  ---------


LOSS BEFORE MINORITY INTEREST     (49,098)   (48,244)    (152,013)  (159,379)

MINORITY INTEREST                  25,428      6,265       62,340     16,823
                              ----------- ----------  ----------- ----------

NET LOSS                          (23,670)   (41,979)     (89,673)  (142,556)

PREFERRED STOCK DIVIDENDS          (1,891)    (1,891)      (5,674)    (5,674)
                              ----------- ----------  ----------- ----------

NET LOSS APPLICABLE TO
  COMMON STOCKHOLDERS             (25,561)   (43,870)     (95,347)  (148,230)

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

Weighed average number
  of common shares
  outstanding                  18,134,928  18,129,493  18,131,325 17,765,226







            See notes to consolidated financial statements.
<PAGE>

                 INMEDICA DEVELOPMENT CORPORATION AND SUBSIDIARY
                      CONSOLIDATED STATEMENTS OF CASH FLOWS


                                                    For the Nine
                                                    Months Ended
                                                    September 30,
                                                    2006       2005
                                                  --------   --------
                                                      (Unaudited)
     CASH FLOWS FROM OPERATING ACTIVITIES:
        Net loss                                  $ (89,673) $(142,556)
       Adjustments to reconcile net
         loss to net cash used in
         operating activities-
           Depreciation and amortization               470        133
           Interest income from amortization
             or discount on notes receivable          (335)    (5,439)
           Minority interest in losses             (62,340)   (16,823)
           Change in assets and liabilities
             Royalty payable to
               Related party                        23,333       -
             Consulting fee payable to
               related party                        18,000    (26,000)
               Accounts payable                       (477)   (29,303)
             Accrued interest payable                  988       (115)
             Accrued payroll and related taxes      (5,553)   (32,521)
                                                  --------   --------
                Net cash used in
                  operating activities            (115,587)  (252,624)
                                                  --------   --------

     CASH FLOWS FROM INVESTING ACTIVITIES:
       Proceeds from note receivable                45,000    135,000
                                                  --------   --------
                       Net cash provided by
                         investing activities       45,000    135,000
                                                  --------   --------

     CASH FLOWS FROM FINANCING ACTIVITIES:
       Proceeds from notes payable                  32,950     52,000
       Payments on notes payable                    (8,912)   (37,433)
       Proceeds from sale of common stock              -0-    150,650
                                                  -------     -------
                Net cash provided by
                  financing activities              24,038    165,217
                                                  --------   --------








           See notes to consolidated financial statements.
<PAGE>

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

                                                       For the Nine
                                                       Months Ended
                                                       September 30,
                                                     2006       2005
                                                   ---------- -------
                                                       (Unaudited)


   NET (DECREASE) INCREASE IN CASH               (46,549)      47,593

   CASH AT BEGINNING OF PERIOD                    51,885        3,600
                                                 -------     --------

   CASH AT END OF PERIOD                        $  5,336      $51,193
                                                 =======      =======






































          See notes to consolidated financial statements
<PAGE>

                 INMEDICA DEVELOPMENT CORPORATION AND SUBSIDIARY
             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)


1.       Basis of Presentation

The  accompanying  unaudited  consolidated  financials  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 a net loss of $89,673  and  $142,556  for the nine month
periods ended September 30, 2006 and 2005, respectively, and negative cash flows
from  operations  of $115,587  and  $252,624  for the nine month  periods  ended
September 30, 2006 and 2005, respectively. As of September 30, 2006, the Company
had an accumulated deficit of $8,622,060. At September 30, 2006, the Company had
a stockholder's deficit of $82,019.  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 working
with Wescor to complete  research,  development and, if warranted,  marketing of
its  hematocrit   technology  and/or  pursuing  other  strategic  alliances  and
licensing  agreements such as the current Agreement with Wescor, Inc. See Item 2
- "Management's Discussion and Analysis."

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, 2005.


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.

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

OVERVIEW.  Since 1989, the Company has engaged in research and  development of a
device to measure  hematocrit  non-invasively  (herein called the  "Non-Invasive
Hematocrit  Technology" and/or the "Technology") and fund raising to finance the
payment of research,  development and administrative expenses. Hematocrit is the
percentage  of red  blood  cells in a given  volume  of human  blood.  Research,
development  and  administrative   expenses  of  the  Company  relating  to  the
Technology  were funded during the 1990's by borrowing  and by royalty  revenues
from the sale of a portable ECG monitor which incorporated  Company  technology.
The  monitor  was  marketed  by  Critikon,  Inc.,  then a  Johnson  and  Johnson
subsidiary.  However Critikon  discontinued the monitor in 2001 and InMedica has
not  since  had  revenues  from  operations.  During  2001 the  Company  and its
subsidiary, MicroCor, Inc. sold restricted common stock to Chi Lin Technologies,
Ltd. of the  Republic of China  (Taiwan)  for  $1,000,000  and used the funds to
continue funding of research,  development and administrative  expenses. Chi Lin
also signed a  development  agreement  under which it  performed or financed the
Company's primary research and development effort, conducted initially in Taiwan
and later in the United States.  When  remaining  funds from the stock sale were
expended during 2003, the Company began searching for additional  funding and/or
a partner to conduct additional  research and development.  In January 2005, the
shareholders  of the Company  approved an Agreement  with Wescor which  provided
additional  funding for  administrative  expenses  and provides for research and
development of the Hematocrit Technology by Wescor.

PLAN OF OPERATION.  During the 12 months beginning  October,  2006 the Company's
plan of operation is to work  cooperatively  with Wescor in the  development and
possible  demonstration  of the Company's  portable  hematocrit  device to other
companies.   In   connection   with  this  effort,   the  Company  will  require
confidentiality  agreements  from parties to which  disclosure  is made and will
allow such parties to informally  evaluate the  technology in order to determine
their  interest.  Wescor is presently  expected to continue to fund the research
and development efforts of MicroCor pursuant to the Joint Development Agreement.
During  2004  and  2005,  the  Company  borrowed  from  Wescor  in order to meet
operating  expenses  and may need to rely on  borrowing  in the  future  to meet
obligations.  While the Company has in the past borrowed from  affiliates,  such
borrowing  may not be  available  in the  future  to meet  obligations  and fund
continued research and development.  If necessary,  InMedica will look for other
funding sources.

LIQUIDITY AND CAPITAL RESOURCES.

The funds  generated  from the sale of stock in 2001 were the sole source of the
Company's  cash  flow  from  May 10,  2001  until  December  31,  2003  and were
sufficient to meet the Company's  operating  expenses through December 31, 2003.
During the years 2004 and 2005 liquidity was generated by borrowings from Wescor
and from the  proceeds of the sale of  MicroCor  stock to Wescor,  Inc.,  a Utah
based medical technology company,  that agreed to conduct additional research on
and  development of the Company's  hematocrit  technology  pursuant to the Joint
Development  Agreement dated September 7, 2004 (the "Agreement").  Liquidity was
also  generated  from sales of restricted  stock to members of  management.  The
Company expects to fund the expense of its administrative  operations during the
ensuing year with a minimum  royalty to be paid  InMedica by MicroCor.  MicroCor
has borrowed funds from Wescor to make one half of the minimum  royalty  payment
and InMedica has agreed to defer the balance of the minimum  royalty  payment on
terms  described  below (See Item 2). The minimum  royalty due InMedica is based
upon terms of the Joint Development  Agreement and is $160,000 per year ($80,000
per  year  after  deferral).  The  royalty  is  to  be  paid  in  equal  monthly
installments,  with the first  payment due March 7, 2006.  The Company will also
seek  additional  sources  of  funding to pay  administrative  expenses  for the
balance of the year.

During  September,  2005,  MicroCor issued 500,000 shares of restricted stock to
Wescor pursuant to the Agreement in  consideration of development of a prototype
for the hematocrit technology. Future research and development efforts of Wescor
will continue to be compensated  through additional  issuances of MicroCor stock
to Wescor  pursuant to the  Agreement.  Among other  things,  the  Agreement may
result  in the  disposition  of  InMedica's  ownership  of its  remaining  stock
ownership of MicroCor, Inc., which holds all of the hematocrit patents, business
and  intellectual  property.  However,  if Wescor is  successful  in  completing
development,   the  regulatory  approvals  and  product  introduction  into  the
marketplace, the Company will be entitled to a royalty on sales of the product.

RESULTS OF OPERATIONS.

InMedica incurred net losses from operations during the nine month periods ended
September  30,  2006  and  2005.  The  Company  had an  accumulated  deficit  of
$8,622,060 as of September 30, 2006 and no revenues from operations are expected
in the  foreseeable  future.  The net loss from  operations  for the nine  month
period ended September 30, 2006 decreased to $89,673 compared to the net loss of
$142,556  for the  same  period  in 2005  primarily  due to an  increase  in the
minority interest from $16,823 to $62,340  resulting in a greater  allocation of
expenses to the holders of the minority  interest.  There was also a decrease of
$10,339 in general and  administrative  expenses  because of  professional  fees
incurred in  conjunction  with a  shareholder  meeting held in January 2005 that
were not incurred in 2006.


Item 3:   CONTROLS AND PROCEDURES

The  Company's  Chief  Executive   Officer  and  Chief  Financial  Officer  have
concluded,  based  on  an  evaluation  required  by  paragraph  (b)  of  Section
240.13a-15 or 240.15d-15  of the Rules of the  Securities  Exchange Act of 1934,
conducted as of the end of the period covered by this  Quarterly  Report on Form
10-QSB,  that the Company's  disclosure  controls and  procedures (as defined in
Exchange Act Rules 13a - 15e or 240.15d-15(e)) have functioned effectively.  For
purposes  of this  Item,  the term  DISCLOSURE  CONTROLS  AND  PROCEDURES  means
controls  and other  procedures  of the Company that are designed to ensure that
information required to be disclosed by the Company in the reports that it files
or  submits  under  the  Securities  Exchange  Act (15  U.S.C.  78a ET  SEQ.) is
recorded, processed,  summarized and reported, within the time periods specified
in the Commission's rules and forms. Disclosure controls and procedures include,
without limitation,  controls and procedures designed to ensure that information
required to be  disclosed by the Company in the reports that it files or submits
under  the Act is  accumulated  and  communicated  to the  issuer's  management,
including its principal executive and principal  financial officers,  or persons
performing similar functions, as appropriate to allow timely decisions regarding
required disclosure.

There have been no changes in the  Company's  internal  control  over  financial
reporting identified in connection with the evaluation required by paragraph (d)
of Section 240.13a 15 or 240.15d-15 of the Rules of the Securities  Exchange Act
of 1934,  that occurred  during the Company's last fiscal quarter (the Company's
fourth  fiscal  quarter in the case of an annual  report)  that have  materially
affected,  or are reasonably likely to materially affect, the Company's internal
control over financial reporting.


     PART II - OTHER INFORMATION

Item 1.           Legal Proceedings:  None

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds: None during
the period  covered by this  report.  However,  effective  October 6, 2006,  the
Company  issued  500,000  shares of restricted  common stock to five persons who
exercised  conversion  rights  pursuant to a promissory note held by them with a
total  outstanding  note  balance of $50,000.  The  exchange  shares were issued
pursuant to Rule 506 of Regulation D and other  exemptions.  Shares  received by
each  purchaser in exchange for their pro rata interest in the  promissory  note
were:  David P. Martin  150,000  shares;  Dean A. Clark,  Trustee of the Dean A.
Clark Family  Trust dated  11/29/1988  150,000  shares;  Julie P. Cheney  95,000
shares;  Lloyd A. Hardcastle 95,000 shares; and Michael L. Schwab 10,000 shares.
The foregoing  shares were  restricted  securities and were issued to accredited
investors who purchased the  securities  based upon their  representations  that
they  were  purchasing  for  their  own  account  and not for  resale.  The note
converted was  originally  issued to Wescor in 2004 and was acquired by the five
purchasers from Wescor in September,  2006 in a private purchase. The purpose of
the transaction  was to provide cash to Wescor in the amount of $50,000.  Wescor
then separately agreed to loan monies to MicroCor  sufficient to enable Microcor
to pay one  half of the  minimum  royalty  owing to  InMedica  under  the  Joint
Development  Agreement.  Funds from the minimum royalty will be used by InMedica
to fund administrative expenses for the Company. Repayment of the loan to Wescor
by MicroCor is secured by a 20% security  interest in any future  revenues  from
the sale of the hematocrit  technology by MicroCor,  until the loan is repaid in
full.

Item 3.  Defaults Upon Senior Securities: None

Item 4.   Submission of Matters to a Vote of Security Holders:  .None

Item 5.   Other Information:
                  The disclosure on the facing sheet of this Form 10QSB that the
Company  is not a "shell  company"  as defined in Rule 12b-2 of the Rules of the
Securities  Exchange Act of 1934, is based on the Company's  conclusion  that it
has more than  "nominal  operations"  as described in Rule 12b-2.  The Company's
operations  consist of ongoing  operating  expenses reported in its statement of
operations,  paid  employees,  a stated  business  purpose of development of the
hematocrit  technology,  a history of pursuing this  purpose,  a past history of
revenues from operations and ongoing  research and development  conducted by its
majority-owned  subsidiary,  MicroCor,  Inc.  In  the  event  the  Company  were
determined to be a "shell company," it would be precluded from using Form S-8 to
register  securities  issued to employees  and would be required to make certain
disclosures on Form 8-K regarding any transaction  that causes it to cease being
a shell  company.  Such  disclosures  consist of filings with the Securities and
Exchange Commission of the same type of information that would be required to be
filed in registering a class of securities  under the Exchange Act.  Examples of
transactions that could cause a company to cease to be a shell company include a
"reverse  acquisition" or "back door  registration" of a "shell company" with an
operating company. The effect of such disclosure  requirement is to increase the
disclosure  requirements for the  non-reporting or  non-registered  company in a
"reverse acquisition" or "back door registration" as more fully described in SEC
Release  Nos.  33-8587  and  34-52038.  The  Company  has no  present  plans  or
commitments to engage in a "reverse  acquisition,"  "back door  registration" or
similar transaction or to register stock on Form S-8.

Item 6.   Exhibits:

                  (10)     Loan  Agreement  between  Wescor,  Inc. and MicroCor,
                           Inc. dated as of March 6, 2006

                  (10)     Security Agreement between Wescor, Inc. and MicroCor,
                           Inc. dated as of March 6, 2006

                  (10)     Promissory  Note of MicroCor,  Inc. dated as of March
                           6, 2006

                  (31.1)   Sarbanes-Oxley  Section  302  Certification  -  Ralph
                           Henson

                  (31.2)   Sarbanes-  Oxley Section 302  Certification-  Richard
                           Bruggeman

                  (32.1)   Sarbanes-Oxley Section 906 Certification

 Reports on Form 8-K: None


<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
                           By Richard Bruggeman, Treasurer


Date:  November 9, 2006




























                EXHIBIT INDEX - INMEDICA DEVELOPMENT CORPORATION
                         FORM 10QSB - SEPTEMBER 30, 2006

EXHIBIT NUMBER DESCRIPTION:

         10.1     Loan Agreement between Wescor,  Inc. and MicroCor,  Inc. dated
                  as of March 6, 2006

         10.2     Security  Agreement  between Wescor,  Inc. and MicroCor,  Inc.
                  dated, March 6, 2006

         10.3     Promissory Note of MicroCor, Inc. dated March 6, 2006

         31.1     Section 302 Certifications of Ralph Henson

         31.2     Section 302 Certifications of Richard Bruggeman

         32.2     Sarbanes-Oxley Section 906 Certification


<PAGE>