UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 10-Q

QUARTERLY REPORT
PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
FOR THE QUARTER ENDED SEPTEMBER 30, 2017

0-28092
(Commission file number)

Medical Information Technology, Inc.
(Exact Name of Registrant as Specified in Its Charter)

Massachusetts
(State of Incorporation)

04-2455639
(IRS Employer Identification Number)

Meditech Circle, Westwood, MA
(Address of Principal Executive Offices)

02090
(Zip Code)

781-821-3000
(Registrant's Telephone Number)

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 [ ]

Page 1 of 15

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.


Index to Form 10-QPage


Part I - Financial Information 
   Item 1 - Financial Statements (Unaudited) 
      Balance Sheets - December 31, 2016 and September 30, 20173
      Statements of Income and Comprehensive Income - Three and Nine Months 
         Ended on September 30, 2016 and 20174
      Statements of Cash Flow - Nine Months Ended on September 30, 2016 and 20175
      Notes to Financial Statements6
   Item 2 - Management's Discussion and Analysis of Operating Results and 
      Financial Condition10
   Item 3 - Quantitative and Qualitative Disclosures About Market Risk11
   Item 4 - Controls and Procedures11
Part II - Other Information 
   Item 1 - Legal Proceedings11
   Item 1A - Risk Factors12
   Item 2 - Unregistered Sales of Equity Securities and Use of Proceeds12
   Item 3 - Defaults Upon Senior Securities12
   Item 4 - Mine Safety Disclosures12
   Item 5 - Other Information12
   Item 6 - Exhibits12
Signatures12
Exhibit 31 - Rule 13a-14(a) Certifications13
Exhibit 32 - Section 1350 Certifications15

Page 2 of 15

Part I - Financial Information

Item 1 - Financial Statements (Unaudited)

Balance Sheets
December 31, 2016 and September 30, 2017

 Dec 31, 2016Sep 30, 2017
 

Cash and equivalents$14,089,951$7,211,770
Marketable securities325,878,440324,467,670
Trade receivables, net of reserve41,574,48341,581,498
Contract assets, prepaid and other12,571,54012,180,539
 

  Current assets394,114,414385,441,477
 

Computer equipment14,948,50314,283,487
Furniture and fixtures75,710,29780,441,547
Buildings251,410,624250,345,910
Land43,195,57643,163,211
Accumulated depreciation(167,211,794)(175,062,766)
 

  Fixed assets218,053,206213,171,389
   
Other assets10,764,42210,003,443
Deferred tax assets11,362,53015,256,188
 

  Total assets$634,294,572$623,872,497
 

   
Accounts payable$222,615$232,611
Taxes payable2,652,0673,427,458
Accrued expenses22,542,13626,117,160
Deferred revenue33,702,33357,603,996
 

  Current liabilities59,119,15187,381,225
   
Deferred tax liabilities33,411,55130,587,133
Tax reserves18,229,17318,873,821
 

  Total liabilities110,759,875136,842,179
 

Common stock, $1.00 par value, authorized  
  40,000,000 shares, issued and outstanding  
  37,190,854 shares in 2016 and 201737,190,85437,190,854
Additional paid-in capital122,907,959122,907,959
Retained income317,019,791281,753,123
Unrealized after-tax security gains46,416,09345,178,382
 

  Shareholder equity523,534,697487,030,318
 

  Total liabilities and shareholder equity$634,294,572$623,872,497
 


Page 3 of 15

Statements of Income and Comprehensive Income
Three and Nine Months Ended on September 30, 2016 and 2017

 3 monthsended on9 monthsended on
 Sep 30, 2016Sep 30, 2017Sep 30, 2016Sep 30, 2017
 



Product revenue$27,379,774$41,029,137$98,471,410$110,436,929
Service revenue83,649,72280,862,326251,211,112245,330,794
 



  Total revenue111,029,496121,891,463349,682,522355,767,723
 



Operations, development74,588,85982,091,622226,545,572245,820,894
Selling, G & A14,133,81322,583,90866,707,16366,234,718
 



  Operating expense88,722,672104,675,530293,252,735312,055,612
 



  Operating income22,306,82417,215,93356,429,78743,712,111
     
Other income11,087,8299,227,31731,162,06826,531,870
Other expense1,574,6681,563,3414,549,5394,616,744
 



  Pretax income31,819,98524,879,90983,042,31665,627,237
     
State income tax(3,710,000)1,130,000(38,000)3,053,000
Federal income tax10,070,0006,287,00022,400,00016,085,000
 



  Income tax6,360,0007,417,00022,362,00019,138,000
 



  Net income$25,459,985$17,462,909$60,680,316$46,489,237
     
Change in unrealized after-tax security gains(6,254,993)1,482,7587,116,831(1,237,711)
 



  Comprehensive income$19,204,992$18,945,667$67,797,147$45,251,526
 




Page 4 of 15

Statements of Cash Flow
Nine Months Ended on September 30, 2016 and 2017

 9 monthsended on
 Sep 30, 2016Sep 30, 2017
 

Net income$60,680,316$46,489,237
Depreciation and amortization expense11,442,17711,022,885
Pre-tax gain on sale of marketable securities(16,285,173)(10,605,608)
Pre-tax gain on sale of fixed assets0(864,218)
Change in trade receivables, net of reserve2,879,079(7,015)
Change in contract assets, prepaid and other(4,255,519)(5,777,723)
Change in deferred tax assets03,037,016
Change in accounts payable133,4559,996
Change in taxes payable(2,003,061)775,391
Change in accrued expenses(9,659,755)3,575,024
Change in deferred revenue6,168,7329,102,192
Change in deferred tax liabilities(9,549)(542,673)
Change in tax reserves502,461644,648
 

  Net cash from operations49,593,16356,859,152
 

Purchases of marketable securities(37,677,167)(23,151,431)
Sales of marketable securities48,519,10333,104,958
Purchases of fixed assets(4,736,680)(6,300,700)
Sales of fixed assets01,867,600
Change in other assets231,868(82,772)
 

  Net cash from investing6,337,1245,437,655
 

Dividends paid(69,174,988)(69,174,988)
 

  Net cash used in financing(69,174,988)(69,174,988)
 

Net change in cash and equivalents(13,244,701)(6,878,181)
Cash and equivalents at beginning23,565,89914,089,951
 

  Cash and equivalents at end$10,321,198$7,211,770
 

Supplemental Non-Cash Disclosure:  
  Net Adjustment for Revenue Recognition Standard (Note 8)$0$12,580,916

Page 5 of 15

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, 2016 included in MEDITECH's Form 10-K filed on January 31, 2017. 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 Sale Securities

MEDITECH follows the provisions of ASC 320-10, 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 them 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 reflected 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 include 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.

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-tax 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.

 Dec 31, 2016Sep 30, 2017
 

Original cost$248,518,286$249,170,367
Unrealized pre-tax gains77,360,15475,859,584
Unrealized pre-tax losses0(562,281)
 

Fair market value$325,878,440$324,467,670

Page 6 of 15

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, 2017 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. 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. 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 2014 through 2016 are subject to examination by the IRS, and various years are subject to examination by state tax authorities.

Note 5. 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.

Page 7 of 15

 3 monthsended on9 monthsended on
 Sep 30, 2016Sep 30, 2017Sep 30, 2016Sep 30, 2017
 



Net income$25,459,985$17,462,909$60,680,316$46,489,237
Average number of shares37,190,85437,190,85437,190,85437,190,854
Earnings per share$0.68$0.47$1.63$1.25

Note 6. Comprehensive Income Presentation

MEDITECH follows the provisions of ASU 2011-05, Presentation of Comprehensive Income, which establishes standards for reporting comprehensive income and its components in financial statements. Comprehensive income is the total of net income and all other non-owner changes in equity including items such as unrealized after-tax gains or losses on marketable securities classified as available for sale, foreign currency translation adjustments and minimum pension liability adjustments. In MEDITECH's case net income plus the change in unrealized after-tax security gains is shown as comprehensive income in the income statement.

 3 monthsended on9 monthsended on
 Sep 30, 2016Sep 30, 2017Sep 30, 2016Sep 30, 2017
 



Unrealized after-tax gains arising during the    
  period on securities existing at period end($2,859,983)$3,746,787$17,671,021$4,471,589
Unrealized after-tax gains arising before the    
  period on securities sold during the period(3,395,010)(2,264,029)(10,554,190)(5,709,300)
 



Change in unrealized after-tax security gains($6,254,993)$1,482,758$7,116,831($1,237,711)

Note 7. 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.

 3 monthsended on9 monthsended on
 Sep 30, 2016Sep 30, 2017Sep 30, 2016Sep 30, 2017
 



United States88%89%88%88%
Canada10%9%10%11%
All others2%2%2%1%

Page 8 of 15

Note 8. New Revenue Recognition Standard Adoption

Effective January 1, 2017 MEDITECH adopted the provisions of ASC 606, Revenue from Contracts with Customers, the new revenue recognition standard, with modified retrospective application.

Under the new standard MEDITECH enters into perpetual software license contracts that provide for a customer deposit upon contract execution, milestone billings during the implementation phase and fixed monthly support fees thereafter. MEDITECH classifies software fees and related implementation fees together 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 classifies post-implementation support as service revenue in the statement of income and recognizes said revenue over time when the related services are rendered.

MEDITECH identifies the performance obligations in the contract, determines the transaction price, allocates the transaction price to the performance obligations, and recognizes revenue upon completion of performance obligations on the percent completion method based on completion of specific events. The primary factors taken into consideration involve tracking and measuring progress to complete software delivery, training on software usage, interfacing the software with other vendor software, and confirming when the software becomes operational at the customer's site.

Modified retrospective application is effective January 1, 2017 for certain contracts not completed by December 31, 2016. Such revenue previously recognized based on completion of contract milestones will be based on the percentage of completion of specific events and all previously paid product installation costs are removed from Contract Assets, Prepaid and Other on balance sheet. The cumulative effect of applying the new standard is a reduction to the opening balance of retained earnings. The following summarizes these changes:
Deferred revenues and revenue claimed as specific events attained under the new percentage of completion standard were $868,466 and $6,234,703 for the three and nine months ended September 30, 2017 respectively. Deferred Revenues were $33,702,333 and $57,603,996 at December 31, 2016 and September 30, 2017 respectively. Also, during the quarter Contract Assets increased $2,927,729. Contract Assets, Prepaid and Other were $12,571,540 and $12,180,539 at December 31, 2016 and September 30, 2017 respectively.

Page 9 of 15

Item 2 - Management's Discussion and Analysis of Operating Results and Financial Condition

Operating3 monthsended onPercent
ResultsSep 30, 2016Sep 30, 2017Change
 


Total revenue$111,029,496$121,891,4639.8%
Operating income22,306,82417,215,933(22.8%)
Net income25,459,98517,462,909(31.4%)
Average number of shares37,190,85437,190,854--
Earnings per share$0.68$0.47(31.4%)
Cash dividends per share$0.62$0.62--

Product revenue increased by $13.6 million or 49.9% due primarily to implementing a higher backlog. Service revenue decreased by $2.8 million or 3.3% due primarily to the consolidation of certain customers. The resultant total revenue increased by $10.9 million.

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

Other income decreased by $1.9 million due primarily to lower realized pre-tax marketable securities gains. Other expense decreased slightly. The resultant pre-tax income decreased by $6.9 million or 21.8%.

MEDITECH's effective tax rate increased from 20.0% to 29.8% due primarily to higher taxable revenues. Net income decreased by $8.0 million due primarily to higher expenses.

Operating9 monthsended onPercent
ResultsSep 30, 2016Sep 30, 2017Change
 


Total revenue$349,682,522$355,767,7231.7%
Operating income56,429,78743,712,111(22.5%)
Net income60,680,31646,489,237(23.4%)
Average number of shares37,190,85437,190,854--
Earnings per share$1.63$1.25(23.4%)
Cash dividends per share$1.86$1.86--

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 reduction 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-tax marketable securities gains. Other expense increased slightly. The resultant pre-tax income decreased by $17.4 million or 21.0%.

MEDITECH's effective tax rate increased from 26.6% to 29.2% due primarily to higher taxable revenues. Net income decreased by $14.2 million due primarily to higher expenses.

Page 10 of 15

Financial ConditionDec 31, 2016Sep 30, 2017
 

Working capital$334,995,263$298,060,252
Total assets634,294,572623,872,497
Total liabilities110,759,875136,842,179
Shareholder equity523,534,697487,030,318
Outstanding number of shares37,190,85437,190,854
Shareholder equity per share$14.08$13.10

Retained earnings at January 1, 2017 was reduced by $12.6 million as a result of the new revenue recognition standard as described in Note 8.

Accrued expenses increased by $3.6 million during the period due primarily to the payment of $15.0 million in bonuses applicable to 2016 offset by the accrual of $17.3 million in bonus expenses applicable to 2017.

At September 30, 2017 MEDITECH's cash, cash equivalents and marketable securities totaled $331.7 million. Marketable securities consisted of preferred and common equities. For the first nine months of 2017 cash flow from operations was $56.9 million, cash flow from investing was $5.4 million and cash flow used in financing was $69.2 million. The $69.2 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, 2017 was $487.0 million. Management anticipates additions to fixed assets will continue, including facility renovations and computer systems for product development, sales and marketing, implementation, service and administrative staff. Management believes existing cash, cash equivalents and marketable securities together with funds generated from operations will be sufficient to meet operating and capital expense requirements for the foreseeable future.

Item 3 - Quantitative and Qualitative Disclosures About Market Risk

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.

Item 4 - Controls and Procedures

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, 2017 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.

Part II - Other Information

Item 1 - Legal Proceedings

None.

Page 11 of 15

Item 1A - Risk Factors

There have been no material changes from the risk factors disclosed in MEDITECH's Annual Report on Form 10-K for the year ended December 31, 2016.

Item 2 - Unregistered Sales of Equity Securities and Use of Proceeds

MEDITECH did not repurchase any of its shares of common stock during the 3rd quarter of 2017. However, during the 3rd quarter the Medical Information Technology, Inc. Profit Sharing Trust purchased MEDITECH's common stock in individual private transactions: 11,002 shares in August at $45 per share and 3,755 shares in September at $45 per share for a total of $664,065.

Item 3 - Defaults Upon Senior Securities

None.

Item 4 - Mine Safety Disclosures

Not applicable.

Item 5 - Other Information

None.

Item 6 - Exhibits

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.

Signatures

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, 2017
(Date)

Howard Messing, Chief Executive Officer and President
(Signature)

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

Page 12 of 15

Exhibit 31: Rule 13a-14(a) Certifications

CERTIFICATION PURSUANT TO RULE 13A-14 OR 15D-14 OF THE SECURITIES EXCHANGE ACT OF 1934, AS ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Howard Messing, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Medical Information Technology, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

Page 13 of 15

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

October 31, 2017
(Date)

Howard Messing, Chief Executive Officer and President
(Signature)

I, Barbara A. Manzolillo, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Medical Information Technology, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting;and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

Page 14 of 15

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

October 31, 2017
(Date)

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

Exhibit 32: Section 1350 Certifications

I, Howard Messing, certify this quarterly report on Form 10-Q of Medical Information Technology, Inc. (MEDITECH) for the period ended September 30, 2017, fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934 and the information contained in this report fairly presents, in all material respects, the financial condition and results of operations of MEDITECH.

October 31, 2017
(Date)

Howard Messing, Chief Executive Officer and President
(Signature)

I, Barbara A. Manzolillo, certify this quarterly report on Form 10-Q of Medical Information Technology, Inc. (MEDITECH) for the period ended September 30, 2017, fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934 and the information contained in this report fairly presents, in all material respects, the financial condition and results of operations of MEDITECH.

October 31, 2017
(Date)

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

Page 15 of 15