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, 2019

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 every Interactive Data File required to be submitted 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 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, 2019.


Index to Form 10-QPage


Part I - Financial Information 
   Item 1 - Financial Statements (Unaudited) 
      Balance Sheets - December 31, 2018 and September 30, 20193
      Statements of Income - Three and Nine Months Ended on September 30, 2018 and 20194
      Statements of Shareholder Equity - Nine Months Ended on September 30, 2018 and 20194
      Statements of Cash Flow - Nine Months Ended on September 30, 2018 and 20195
      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, 2018 and September 30, 2019

 Dec 31, 2018Sep 30, 2019
 

Cash and equivalents$23,095,977$59,815,535
Marketable securities268,638,359393,533,838
Trade receivables, net of reserve36,760,81233,551,137
Contract assets, prepaid and other12,077,93513,424,155
 

  Current assets340,573,083500,324,665
   
Computer equipment13,979,60912,756,328
Furniture and fixtures92,804,04075,892,732
Buildings240,288,774190,105,517
Land40,959,23026,717,577
Accumulated depreciation(175,832,443)(135,587,481)
 

  Fixed assets212,199,210169,884,673
   
Other assets8,430,5157,317,865
Deferred tax assets8,257,1449,139,729
 

  Total assets$569,459,952$686,666,932
 

   
Accounts payable$701,524$558,370
Taxes payable1,825,52821,758,813
Accrued expenses23,916,83230,879,029
Deferred revenue52,666,65152,610,706
 

  Current liabilities79,110,535105,806,918
   
Deferred tax liabilities12,409,40723,618,789
Tax reserves17,039,28215,561,864
 

  Total liabilities108,559,224144,987,571
   
Common stock, $1.00 par value, authorized  
  40,000,000 shares, issued and outstanding  
  37,190,854 shares in 2018 and 201937,190,85437,190,854
Additional paid-in capital122,907,959122,907,959
Retained income300,801,915381,580,548
 

  Shareholder equity460,900,728541,679,361
   
  Total liabilities and shareholder equity$569,459,952$686,666,932
 


Page 3 of 15

Statements of Income
Three and Nine Months Ended on September 30, 2018 and 2019

 3 monthsended on9 monthsended on
 Sep 30, 2018Sep 30, 2019Sep 30, 2018Sep 30, 2019
 



Product revenue$38,142,722$39,045,234$124,509,941$109,541,712
Service revenue80,966,21482,159,783241,990,780246,977,881
 



  Total revenue119,108,936121,205,017366,500,721356,519,593
     
Operations, development83,699,50881,867,771251,117,573249,576,836
Selling, G & A21,225,15626,454,91267,426,63668,374,794
 



  Operating expense104,924,664108,322,683318,544,209317,951,630
     
  Operating income14,184,27212,882,33447,956,51238,567,963
     
Other income5,167,0964,425,79120,742,08815,532,959
Gain on sale of property088,948,907088,948,907
Change in unrealized securities gains4,985,82413,393,010(11,319,620)43,714,720
Other expense1,810,3551,611,7525,399,2485,083,282
 



  Pre-tax income22,526,837118,038,29051,979,732181,681,267
     
State income tax(16,000)5,198,00021,0005,554,000
Federal income tax3,379,00022,044,0005,846,00032,868,000
 



  Income tax3,363,00027,242,0005,867,00038,422,000
     
  Net income$19,163,837$90,796,290$46,112,732$143,259,267
 




Statements of Shareholder Equity
Nine Months Ended on September 30, 2018 and 2019

 9 monthsended on
 Sep 30, 2018Sep 30, 2019
 

Shareholder equity at beginning of period$496,928,250$460,900,728
Net income46,112,732143,259,267
Dividends paid(69,174,988)(62,480,634)
 

  Shareholder equity at end of period$473,865,994$541,679,361
 


Page 4 of 15

Statements of Cash Flow
Nine Months Ended on September 30, 2018 and 2019

 9 monthsended on
 Sep 30, 2018Sep 30, 2019
 

Net income$46,112,732$143,259,267
Depreciation and amortization expense11,111,79010,405,170
Loss (gain) on sale of marketable securities             272,229(2,598,283)
Loss (gain) on sale of fixed assets(5,051,454)(88,416,610)
Change in unrealized securities gains11,319,620(43,714,720)
Change in trade receivables, net of reserve5,742,2103,209,675
Change in contract assets, prepaid and other1,858,710(1,346,221)
Change in deferred tax assets745,983(882,585)
Change in accounts payable302,119(143,154)
Change in taxes payable(3,139,604)19,933,285
Change in accrued expenses5,360,1036,962,197
Change in deferred revenue(3,843,927)(55,945)
Change in deferred tax liabilities(3,848,739)11,209,382
Change in tax reserves(1,166,431)(1,477,418)
 

  Net cash from operations65,775,34156,344,040
   
Purchases of marketable securities(9,302,511)(127,699,359)
Sales of marketable securities25,274,76849,116,883
Purchases of fixed assets(9,767,791)(4,556,569)
Sales of fixed assets8,238,158125,163,796
Change in other assets(104,702)831,401
 

  Net cash from investing14,337,92242,856,152
   
Dividends paid(69,174,988)(62,480,634)
 

  Net cash used in financing(69,174,988)(62,480,634)
   
Net change in cash and equivalents10,938,27536,719,558
Cash and equivalents at beginning of period17,436,62723,095,977
 

  Cash and equivalents at end of period$28,374,902$59,815,535
 


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, 2018 included in MEDITECH's Form 10-K filed on January 31, 2019. 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 and records the unrealized change in marketable securities gains within the 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. During the first nine months of 2019, said change increased by $46,776,897 from the December 31, 2018 value of $51,469,005 to the September 30, 2019 value of $98,245,902.

The following table indicates the original cost, unrealized pretax gains and losses, and fair market value of MEDITECH's securities.

 Dec 31, 2018Sep 30, 2019
 

Original cost$217,169,354$295,287,936
Unrealized pretax gains62,156,967101,459,671
Unrealized pretax losses(10,687,962)(3,213,769)
 

  Fair market value$268,638,359$393,533,838

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 September 30, 2019 carrying value.

Page 6 of 15

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 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 within the income statement. 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 within the income statement. 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 September 30, 2019, outstanding performance obligations amounted to $176.3 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.

Page 7 of 15

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 million and $39.8 million at December 31, 2018 and September 30, 2019 respectively. During the first nine months a total of $22.1 million was removed and recognized as revenue when specific events were completed. Also, Contract Assets were $5.9 million and $10.4 million at December 31, 2018 and September 30, 2019 respectively.

Note 5. Leases

On September 19, 2019 MEDITECH sold property including a building, land, furniture, fixtures and equipment for $120 million and recorded a gain of $88.9 million within the Statement of Income. Note that the terms of the sale allow MEDITECH to hold a small short term lease until its staff can be relocated. Prior to the sale, the property was a mixed use facility with the majority of space available for lease. Accordingly, the following disclosures have been updated to reflect the sale.

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 8 facilities it occupies, containing 1.1 million square feet of office space. MEDITECH occupies 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 are 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 for as a new lease.

When a lease agreement is entered into between MEDITECH (lessor) and another party (lessee), the agreement may include non-lease components, being services such as cleaning, utilities, security and grounds maintenance. The company does not separate the lease and non-lease components and treats all as a single lease component. In all cases there is a provision that requires the lessee to pay a proportional share of real estate taxes on a quarterly basis over and above the base year of the lease. Such costs are considered variable and a reimbursement of costs MEDITECH has paid, which are expensed as incurred.

MEDITECH does not lease other property and equipment in its operations. All contracts the company has with vendors are reviewed annually for identification of lease components and none exist.

Lease income was $6.4 million and $4.0 million for the 9 months ended on September 30, 2018 and 2019 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 September 30, 2019 is as follows:

YearCash Flow


20197,375,000
20204,058,000
20211,454,000
2022222,000
202344,000
After0

Page 8 of 15

Investments in Operating leases are as follows at September 30, 2019:

Building and Office Space, at cost$28,951,486
Lease Origination Costs262,501
Accumulated Depreciation(9,216,645)


  Net Investment in Operating Leases$19,997,342

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 2016 through 2018 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.

 3 monthsended on9 monthsended on
 Sep 30, 2018Sep 30, 2019Sep 30, 2018Sep 30, 2019
 



Net income$19,163,837$90,796,290$46,112,732$143,259,267
Average number of shares37,190,85437,190,85437,190,85437,190,854
Earnings per share$0.52$2.44$1.24$3.85

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.

 3 monthsended on9 monthsended on
 Sep 30, 2018Sep 30, 2019Sep 30, 2018Sep 30, 2019
 



United States87%87%87%87%
Canada11%11%11%11%
All others2%2%2%2%

Page 9 of 15

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

Operating3 monthsended onPercent
ResultsSep 30, 2018Sep 30, 2019Change




Total revenue$119,108,936$121,205,0171.8%
Operating income14,184,27212,882,334(9.2%)
Net income19,163,83790,796,290473.8%
Average number of shares37,190,85437,190,854--
Earnings per share$0.52$2.44473.8%
Cash dividends per share$0.62$0.56(9.7%)

Product revenue increased by $0.9 million or 2.4% due primarily to a higher backlog. Service revenue increased by $1.2 million or 1.5% due primarily to more customers becoming live. The resultant total revenue increased by $2.1 million.

Operating expense increased by $3.4 million or 3.2% due primarily to $3.0 million more accrued for the Profit Sharing Trust. The resultant operating income decreased by $1.3 million.

Other income increased $88.2 million due primarily to the sale of a building. Change in unrealized marketable securities gains increased $8.4 million. Other expenses decreased a nominal $0.2 million. The resultant pre-tax income increased by $95.5 million.

MEDITECH's effective tax rate increased from 14.9% to 23.1%. Net income increased $71.6 million due primarily to the sale of a building.

Operating9 monthsended onPercent
ResultsSep 30, 2018Sep 30, 2019Change




Total revenue$366,500,721$356,519,593(2.7%)
Operating income47,956,51238,567,963(19.6%)
Net income46,112,732143,259,267310.7%
Average number of shares37,190,85437,190,854--
Earnings per share$1.24$3.85310.7%
Cash dividends per share$1.24$1.12(9.7%)

Product revenue decreased by $15.0 million or 12.0% due primarily to a lower backlog. Service revenue increased by $5.0 million or 2.1% due primarily to more customers becoming live. The resultant total revenue decreased by $10.0 million.

Operating expense decreased by $0.6 million or 0.2% due primarily to a reduction of staff related expenses. The resultant operating income decreased by $9.4 million.

Other income increased $83.7 million due primarily to the sale of a building. Change in unrealized marketable securities gains increased $55.0 million. Other expenses decreased by a nominal $0.3 million. The resultant pre-tax income increased by $129.7 million.

MEDITECH's effective tax rate increased from from 11.3% to 21.1% and net income increased by $97.1 million, both due primarily to the gain realized on the sale of a building and the change in unrealized marketable securities gains.

Page 10 of 15

Financial ConditionDec 31, 2018Sep 30, 2019



Working capital$261,462,548$394,517,747
Total assets569,459,952686,666,932
Total liabilities108,559,224144,987,571
Shareholder equity460,900,728541,679,361
Outstanding number of shares37,190,85437,190,854
Shareholder equity per share$12.39$14.56

Accrued bonus expenses increased by $3.3 million during the period due to the payment of $15.0 million in bonuses applicable to 2018 offset by the accrual of $18.3 million in bonus expenses applicable to 2019. Self-insured health insurance expenses increased $0.9 million during the period reflecting the timing difference of claims billings for payment.

At September 30, 2019 MEDITECH's cash, cash equivalents and marketable securities totaled $453.3 million. Marketable securities consisted of preferred and common equities. For the first nine months of 2019 cash flow from operations was $56.3 million, cash flow from investing was $42.9 million and cash flow used in financing was $62.5 million. The $62.5 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, 2019 was $541.7 million. Management anticipates additions to fixed assets will continue, including new facilities 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, 2018.

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, 2019 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.

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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, 2018.

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 2019. However, during the 3rd quarter the Medical Information Technology, Inc. Profit Sharing Trust purchased MEDITECH's common stock in individual private transactions 450 shares in July at $44 per share, 7,929 shares in August at $44 per share and 6,360 shares in September at $44 per share for a total of $648,516.

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, 2019
(Date)

Howard Messing, Chief Executive Officer
(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

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(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, 2019
(Date)

Howard Messing, Chief Executive Officer
(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

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(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, 2019
(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, 2019, 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, 2019
(Date)

Howard Messing, Chief Executive Officer
(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, 2019, 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, 2019
(Date)

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

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