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 March 31, 2019.2020.

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, 20182019 included in MEDITECH's Form 10-K filed on January 31, 2019.2020. 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. Marketable Securities

MEDITECH follows the provisions of ASC 321, Investments - Equity Securities, which requires marketable securities to be recorded at fair value with changesand the unrealized change in fair valuemarketable securities recorded throughwithin the Income Statement.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 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. MEDITECH has no elements of other comprehensive income and records the unrealized change in marketable securities gains within the Income Statement. During the first quarter of 2019, said change increased by $24,423,027 from the December 31, 2018 value of $51,469,005 to the March 31, 2019 value of $75,892,032.

The following table indicates the original cost, unrealized pretax gains and losses, and fair market value of MEDITECH's securities. MEDITECH evaluated the unrealized losses as of March 31, 2019 and concluded these were temporary in nature.

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 believes the fair value of this investment approximates its March 31, 20192020 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. Revenue Recognition

MEDITECH follows the provisions of ASC 606, Revenue from Contracts with Customers. MEDITECH enters into perpetual software license contracts which provide for a customer deposit upon contract execution, milestone billings during the implementation phase and fixed monthly support fees thereafter.

MEDITECH considers software fees and related implementation fees together as a single performance obligation and classifies it as product revenue in the statement of income. Such revenue is recognized over time with the transfer of promised goods and services to the customer. MEDITECH considers post-implementation support fees as a separate performance obligation and classifies it as service revenue in the statement of income. Such revenue is recognized over time as the related services are rendered.

MEDITECH identifies the performance obligations for each contract, determines the transaction price, allocates the price to the performance obligations, and recognizes revenue when (or as) a performance obligation is satisfied on the percent completion method based on completion of specific events. The primary factors taken into consideration involve tracking and measuring the progress of events needed to complete software delivery, training on software usage, interfacing the software with other vendor software, and bringing the software operational at the customer's site. Events identified are estimated at the outset of a contract and the transaction price is allocated equally over said events. Annual studies are conducted on the events required to complete contracted performance obligations and to verify the validity of total events required. Variable consideration is reviewed at the outset of a contract and if present, included in the percentage completion allocation.

At March 31, 2019,2020, outstanding performance obligations amounted to $133.4$193.0 million, with revenue to be recognized over the next 12-36 months as MEDITECH works with respective customers to schedule the corresponding software delivery and implementation events.

MEDITECH's invoices are issued as per contract terms and are typically paid by customers within one month of invoice date. Differences between timing of MEDITECH's invoicing and timing of completed performance obligations are categorized as Deferred Revenues and Contract Assets. Deferred Revenues represent invoices rendered in advance of revenue recognition. Contract Assets represent revenue recognized for which invoices have not yet been rendered.

Deferred product revenue was $42.9$29.0 million and $45.1$30.3 million at December 31, 20182019 and March 31, 20192020 respectively. During the quarter a total of $10.9$8.4 million was removed and recognized as revenue when specific events were completed. Also, Contract Assets were $5.9$8.6 million and $7.4$13.5 million at December 31, 20182019 and March 31, 20192020 respectively.

Note 5. Leases

MEDITECH follows the provisions of ASC 842, Leases, which requires improved disclosure on timing and uncertainties of cash flow arising from leases. MEDITECH owns all 98 facilities it occupies, containing 1.61.1 million square feet of office space. MEDITECH occupies 78%87% of the space and the remainder is leased to various tenants. All are operating leases. Related operating expenses are allocated based on square footage ratio of leased to MEDITECH space. The length of MEDITECH's lease agreements vary and may include a rent-free period, extension options, or escalated lease payment. There arehave been no agreements with termination options or variable payments dependent on outside variables. MEDITECH recognizes lease income and related brokerage fees on a straight-line basis for all agreements. MEDITECH will not consider a lease extended until an amendment is signed by both parties, at which point it is accounted formaterial changes from the leasing arrangements as a new lease.discussed in the Company's 2019 financial statements.

Quarterly leaseLease income was $2,105,204$2.0 million and $1,978,839$1.1 million for the 3 months ended on March 31, 20182019 and March 31, 20192020 respectively. Such income is included within Other Income for financial reporting purpose. Cash Flow projections through the end of all outstanding lease terms for properties currently under lease commitment at March 31, 20192020 is as follows:

Investments in Operating leases are as follows at March 31, 2019:2020:

Note 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 20162017 through 20182019 are subject to examination by the IRS, and various years are subject to examination by state tax authorities.

Note 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.

Note 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 decreasedincreased by $9.0$25.2 million or 21.5%76.7% due primarily to the prior year's delaysa larger backlog and more implementations, including $16.5 million not recognized upon product installation in product bookings.2019, but collection of which deemed probable in 2020. Service revenue increased by $2.0$2.2 million or 2.6% due primarily to better customer retention.more customers going live. The resultant total revenue decreasedincreased by $7.0$27.4 million.

Operating expense decreasedincreased by $1.8$6.6 million or 1.7%6.3% due primarily to a reduction ofincreased staff related expenses. The resultant operating income decreasedincreased by $5.2$20.8 million.

Other income increased $0.4 million. Change in unrealizeddecreased by a nominal amount. Unrealized marketable securities gains increased $46.2 million.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 expenses decreased by $0.1$0.9 million. The resultant pre-tax income increased by $41.5of $42.9 million changed to a resultant pre-tax loss of $39.3 million.

MEDITECH's effective tax rate increasedof 12.8% changed to 15.8%an effective tax benefit of (34.5%) due primarily to the period's increasea decrease in unrealized marketable securities gains. Net income increased by $33.3of $36.1 million changed to a net loss of ($25.7) million also due primarily to the period's increasea decrease in unrealized marketable securities gains.

Accrued expenses decreased by $6.8$4.8 million during the period due primarily to the payment of $15.0 million in bonuses applicable to 20182019 offset by the accrual of $4.0$10.4 million in bonus expenses applicable to 2019. Effective 20192020. The self-insured health insurance is self-insured and accrued expenses increased $3.9 million. This reflectsexpense portion decreased $0.5 million during the period reflecting the timing differencesdifference of claims billings for payment under the plan.payment.

At March 31, 20192020 MEDITECH's cash, cash equivalents and marketable securities totaled $313.1$359.2 million. Marketable securities consisted of preferred and common equities. For the first three months of 20192020 cash flow from operations was $7.9$19.7 million, cash flow from investing was $4.3$9.0 million and cash flow used in financing was $20.8 million. The $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 March 31, 20192020 was $476.2$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 new facilitiesworking 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, 2018.2019.

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 March 31, 20192020 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, 2018.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 1st quarter of 2019.2020. However, during the 1st quarter the Medical Information Technology, Inc. Profit Sharing Trust purchased MEDITECH's common stock in individual private transactions 28,22216,940 shares in February at $44 per share and 17,36213,315 shares in March at $44 per share for a total of $2,005,696.$1,331,220.

None.

Not applicable.

TheOn March 27, 2020 the Annual Meeting of Shareholders was postponed from April 27, 2020 to a later date due to the COVID-19 pandemic. The current Board of Medical Information Technology, Inc. was held at its corporate offices, 1 Constitution Way, Foxborough, Massachusetts, on Monday, April 22, 2019. On the March 22, 2019 record date there were a totalDirectors, consisting of 37,190,854 shares of MEDITECH's common stock, par value $1.00 per share outstanding. A total of 36,138,179 shares or 97.2% of the outstanding shares, constituting a quorum, were represented at the meeting by proxy or in person by ballot.

The following six directors of MEDITECH were electedA. Neil Pappalardo, Lawrence A. Polimeno, Howard Messing, Barbara A. Manzolillo, Stuart N. Lefthes and Edward B. Roberts, continue to serve until the 2019 Annual Meeting and thereafter until their successors are chosen and qualified, with votes cast as follows:qualified.

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)

April 30, 20192020
(Date)

Howard Messing, Chief Executive Officer
(Signature)

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