Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities 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 [ ]

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes [X] No [ ]

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer", "accelerated filer", "smaller reporting company" and "emerging growth company" in Rule 12b-2 of the Exchange Act. Large accelerated filer [ ] Accelerated filer [ ] Non-accelerated filer [X] Smaller reporting company [ ] Emerging growth company [ ]

If an emerging growth company, indicate by check mark if the registrant has elected to not use the extended transition period for complying with any new or revisited financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. [ ]

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

No public trading market exists for the registrant's common stock. There were 37,190,854 shares of common stock, $1.00 par value, outstanding at September 30, 2017.March 31, 2020.

Notes To Financial Statements

Note 1. Significant Accounting Policies

The unaudited financial statements presented herein have been prepared in accordance with the instructions to Form 10-Q and do not include all of the information and note disclosures required by generally accepted accounting principles. These statements should be read in conjunction with the financial statements and notes thereto for the year ended December 31, 20162019 included in MEDITECH's Form 10-K filed on January 31, 2017.2020. The unaudited financial statements presented herein have not been audited by our Independent Registered Public Accounting Firm in accordance with the standards of the Public Company Accounting Oversight Board (United States), but in the opinion of management such financial statements include all normal recurring adjustments necessary to present fairly MEDITECH's financial position, operating results and cash flow.

Note 2. Available For SaleMarketable Securities

MEDITECH follows the provisions of ASC 320-10,321, Investments - Debt and Equity Securities, which requires marketable securities be classified as trading, available-for-sale or held-to-maturity. MEDITECH classifies its marketable securities as available-for-sale and records themrecorded at fair value with any unrealized after-tax gains or losses reported as a component of shareholder equity. The fair value was determined based on quoted prices in active markets. ASC 320-10 requires that for each individual security classified as available-for-sale, a company shall determine whether a decline in fair value below the cost basis is temporary in nature. If the decline in fair value is not judged as such, the cost basis of the individual security shall be reduced to fair value and the amount of the write-down shall be reflectedunrealized change in earnings.

MEDITECH follows the provisions of ASC 320-10-35 Subsequent Measurement, and evaluates its marketable securities for other-than-temporary impairment using an impairment model consistent with a debt security. The factors considered includerecorded within the severity and duration of the loss, the intent and ability to hold the securities for an extended period of time until recovery, and whether issuers are current on dividend payments and maintain investment grade ratings. Finally, the effect of fluctuating interest rates, current economic and industry conditions, and the issuers' current financial position are also taken into consideration.income statement.

MEDITECH follows the provisions of ASC 820-10, Fair Value Measurements and Disclosures, which provides for expanded disclosure and guidelines to determine fair market value of assets and liabilities. ASC 820-10 applies whenever other standards require or permit assets and liabilities to be measured at fair value, but does not expand the use of fair value in any new circumstances. MEDITECH's marketable securities represent assets measured at fair value on a recurring basis, and are considered Level 1 assets as defined by ASC 820-10.

The following table indicates the original cost, unrealized pre-taxpretax gains and losses, and fair market value of MEDITECH's securities. The change in unrealized after-tax security gains and losses have been accounted for within comprehensive income. There was an unrealized pre-tax loss as of September 30, 2017.

Note 3. Equity Method Investments

MEDITECH follows the provisions of ASC 323-10, Investments - Equity Method and Joint Ventures, and as such, accounts for the equity investment in Meditech South Africa in accordance with the cost method. Meditech South Africa licenses MEDITECH's software technology and re-licenses it to its respective customers. Meditech South Africa serves a market niche which is part of the overall medical market but is outside of the health care market which MEDITECH serves. MEDITECH holds a fully collateralized mortgage note for a loan to Meditech South Africa to purchase land and a building used as its corporate headquarters. MEDITECH believes the fair value of this investment and loan balance approximates its September 30, 2017March 31, 2020 carrying value.

During the 2nd quarter 2007 MEDITECH acquired Patient Care Technologies, Inc. (PtCT), a company engaged in the development, manufacture, licensing and support of computer software products for the home health care market. MEDITECH accounted for this acquisition under the purchase method of accounting in accordance with ASC 805-10, Business Combinations. PtCT merged with and into MEDITECH effective December 31, 2009.

During the 1st quarter 2011 MEDITECH acquired LSS Data Systems, Inc. (LSS), a company engaged in the development, manufacture, licensing and support of ambulatory information system software for physician practices. MEDITECH accounted for this acquisition under the purchase method of accounting in accordance with ASC 805-10, Business Combinations. LSS merged with and into MEDITECH effective December 31, 2013.

MEDITECH follows the provisions of ASC 350-20-35 Intangibles, Goodwill and Other Qualitative Testing.Other. MEDITECH annually assesses qualitative factors of its goodwill and intangible assets for impairment to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. The evaluation assesses all relevant economic, industry, regulatory, and legal facts and circumstances as well as overall performance. If, after assessing the totality of such facts and circumstances, MEDITECH determines that it is more likely than not that the fair value of a reporting unit is not less than its carrying amount, then no further goodwill impairment testing is necessary.

Note 4.6. Income Tax Accounting

MEDITECH follows the provisions of ASC 740-10, Accounting for Income Taxes. Deferred taxes relate to the earlier recognition of certain revenue and the later recognition of certain expenses for tax purposes. They also relate to the increase in fair market value over the cost basis of marketable securities. Tax reserves relate to the uncertainty of state nexus. Key judgments are reviewed annually and adjusted to reflect current assessments. The years 20142017 through 20162019 are subject to examination by the IRS, and various years are subject to examination by state tax authorities.

Note 5.7. Earnings Per Share

MEDITECH follows the provisions of ASC 260-10, Earnings per Share, which requires reporting both basic and diluted earnings per share. MEDITECH has no common share equivalents such as preferred stock, warrants or stock options which would dilute earnings per share. Thus, earnings per share is computed by dividing net income by the weighted average number of common shares outstanding during the applicable period. In general, the average number of shares reflects the annual issuance of shares sold to staff members in February pursuant to the 2004 Stock Purchase Plan or contributed to the MEDITECH Profit Sharing Trust in December.

Note 7.8. Segment Reporting

MEDITECH follows the provisions of ASC 280-10, Segment Reporting. Based on the criteria set forth in ASC 280-10, MEDITECH currently operates in one operating segment, medical software and services. MEDITECH derives most of its operating revenue from the sale and support of one group of similar products and services. All of MEDITECH's assets are located within the United States. The following table indicates the operating revenue percentage based on location of customer.

Product revenue increased by $13.6$25.2 million or 49.9%76.7% due primarily to implementing a higher backlog.larger backlog and more implementations, including $16.5 million not recognized upon product installation in 2019, but collection of which deemed probable in 2020. Service revenue decreasedincreased by $2.8$2.2 million or 3.3%2.6% due primarily to the consolidation of certain customers.more customers going live. The resultant total revenue increased by $10.9$27.4 million.

Operating expense increased by $16.0$6.6 million or 18.0%6.3% due primarily to higherincreased staff related expenses most of which was due to a non-recurring bonus accrual reduction in the prior period.expenses. The resultant operating income decreasedincreased by $5.1$20.8 million.

Other income decreased by $1.9 million due primarily to lower realized pre-taxa nominal amount. Unrealized marketable securities gains.gains changed from a $28.6 million increase to a $75.2 million decrease due to stock market declines initiated by the COVID-19 pandemic. Other expenseexpenses decreased slightly.by $0.9 million. The resultant pre-tax income decreased by $6.9of $42.9 million or 21.8%.changed to a resultant pre-tax loss of $39.3 million.

MEDITECH's effective tax rate increased from 20.0%of 12.8% changed to 29.8%an effective tax benefit of (34.5%) due primarily to higher taxable revenues.a decrease in unrealized marketable securities gains. Net income decreased by $8.0of $36.1 million changed to a net loss of ($25.7) million also due primarily to higher expenses.

Product revenue increased by $12.0 million or 12.2% due primarily to implementing a higher backlog. Service revenue decreased by $5.9 million or 2.3% due primarily to the consolidation of certain customers. The resultant total revenue increased by $6.1 million.

Operating expense increased by $18.8 million or 6.4% due primarily to higher staff related expenses most of which was due to a non-recurring bonus accrual reductiondecrease in the prior period. The resultant operating income decreased by $12.7 million.

Other income decreased by $4.6 million due primarily to lower realized pre-taxunrealized marketable securities gains. Other expense increased slightly. The resultant pre-tax income decreased by $17.4 million or 21.0%.

Accrued expenses increaseddecreased by $3.6$4.8 million during the period due primarily to the payment of $15.0 million in bonuses applicable to 20162019 offset by the accrual of $17.3$10.4 million in bonus expenses applicable to 2017.2020. The self-insured health insurance expense portion decreased $0.5 million during the period reflecting the timing difference of claims billings for payment.

At September 30, 2017March 31, 2020 MEDITECH's cash, cash equivalents and marketable securities totaled $331.7$359.2 million. Marketable securities consisted of preferred and common equities. For the first ninethree months of 20172020 cash flow from operations was $56.9$19.7 million, cash flow from investing was $5.4$9.0 million and cash flow used in financing was $69.2$20.8 million. The $69.2$20.8 million dividend payment to shareholders was the primary use of cash generated by operating and investing activities during the period.

MEDITECH has no long-term debt. Shareholder equity at September 30, 2017March 31, 2020 was $487.0$511.2 million. Management anticipates additions

The major effect of the COVID-19 pandemic on MEDITECH's first quarter performance was the decline in value of its marketable securities and the decline in new product bookings. MEDITECH quickly transitioned its staff to fixed assets will continue, including facility renovationsworking at home and computer systems for product development, sales and marketing, implementation,adapted from live to virtual customer service and administrative staff.product implementation. Management believes existing cash, cash equivalentsthere are sufficient funds for all current operating requirements, but uncertainty in future sales, staff productivity and marketable securities together with funds generated from operations will be sufficient to meet operating and capital expense requirements for the foreseeable future.trade receivables could have a substantial impact on business.

There have been no material changes from the market risk disclosed in MEDITECH's Annual Report on Form 10-K for the year ended December 31, 2016.2019.

An evaluation was conducted under the supervision and with the participation of MEDITECH's management, including the Chief Executive Officer and Chief Financial Officer, on the effectiveness of MEDITECH's disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934) as of the end of the period covered by this report. Based on this evaluation, the Chief Executive Officer and Chief Financial Officer have concluded MEDITECH's disclosure controls and procedures are effective at September 30, 2017March 31, 2020 to ensure information requiring disclosure by MEDITECH in reports which it files or submits under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in Securities and Exchange Commission rules and forms. There were no changes in MEDITECH's internal control over financial reporting occurring during the fiscal quarter covered by this report which have materially affected or are reasonably likely to materially affect MEDITECH's internal control over financial reporting.

None.

There have been no material changes fromThe impact of the risk factors disclosedCOVID-19 pandemic on the healthcare industry is a significant unknown. Change in MEDITECH's Annual Report on Form 10-K formedical procedures and processes will reverberate throughout the year ended December 31, 2016.industry and could adversely affect our ability to procure new business and maintain operations as done today.

MEDITECH did not repurchase any of its shares of common stock during the 3rd1st quarter of 2017.2020. However, during the 3rd1st quarter the Medical Information Technology, Inc. Profit Sharing Trust purchased MEDITECH's common stock in individual private transactions: 11,002transactions 16,940 shares in AugustFebruary at $45$44 per share and 3,75513,315 shares in SeptemberMarch at $45$44 per share for a total of $664,065.$1,331,220.

None.

Not applicable.

Exhibit 3.1: MEDITECH's Articles of Organization, as amended to date, are incorporated by reference to an exhibit to the quarterly report on Form 10-Q for the quarter ended March 31, 2007. Exhibit 3.2: MEDITECH's By-Laws, as amended to date, are incorporated by reference to an exhibit to the current report on Form 8-K filed on July 2, 2010.

Exhibit 31: Rule 13a-14(a) Certifications, Exhibit 32: Section 1350 Certifications and Exhibit 101: Interactive Data Files are appended to this report.

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Medical Information Technology, Inc.
(Registrant)

October 31, 2017April 30, 2020
(Date)

Howard Messing, Chief Executive Officer and President
(Signature)

Barbara A. Manzolillo, Chief Financial Officer and Treasurer
(Signature)