83-78 RATIFYING AND APPROVING THE EXECUTION OF A PURCHASE CONTRACT AMONG THE CITY OF DECATUR, MACON COUNTY, ILLINOIS, DECATUR MEMORIAL HOSPITAL AND SMITH BARNEY, HARRIS UPHAM & CO. INC. AND OTHER UNDERWRITERS

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� � Proof No.6-9-27-83—(4246) La Salle St.Press-527-3080—(Pat. No.3,136,248) IN CONNECTION WITH THIS OFFERING, THE UNDERWRITERS MAY OVER-ALLOT OR EFFECT TRANSACTIONS WHICH STABILIZE OR MAINTAIN THE MARKET PRICE OF THE SERIES 1983 BONDS AT A LEVEL ABOVE THAT WHICH MIGHT OTHERWISE PRE- VAIL IN THE OPEN MARKET. SUCH STABILIZING, IF COMMENCED, MAY BE DISCON- TINUED AT ANY TIME. No dealer, broker, salesman or other person has been authorized by the City of Decatur,Decatur Memorial Hospital or the Underwriters to give any information or to make any representation other than as contained in this Official Statement, and, if given or made, such other information or repre- sentation must not be relied upon as having b�en authorized by any of the foregoing. This Official Statement does not constitute an offer to sell or the solicitation of an ofFer to buy, nor shall there be any sale of the Series 1983 Bonds by any person in any jurisdiction in which it is unlawful for such , person to make such offer, solicitation or sale. The information contained in this Official Statement has been furnished by Decatur Memorial Hospital and other sources which are deemed to be reliable but is not guazanteed as to the accuracy or completeness by, and is not to be construed as a representation by, the Underwriters. The informa- ti n and ex ressions of o inion herein are sub'ect to chan e without notice and neither the delivery o P P l g of this Official Statement, nor any sale made hereunder, shall under any circumstances create an im- plication that there has been no change in the affairs of the City of Decatur or Decatur Memorial Hospital since the date hereof. TABLE OF CONTENTS Page Page Summary Statement . 1 Physician Recruitrnent . . . . 24 Introduction 3 Physicians' Offce Building . . . . . . � Advance Refunding of the Series 1977 Bonds and The Service Area � the Series 1981 Bonds . 4 Comparative Utilization Statistics . . . . . . . . . . 25 The Issuer . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Hospital Service Charges . . . . . . . . . . . . . . 26 � Estimated Sources and Uses of Funds . fi Maior Employers in the Service Area 26 � Security for the Series 1983 Bonds . . . . 7 Professional and General Liability . . . . . . . . . . . 26 � Description of the Series 1983 Bonds . . . . . . . . . g Litigation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27 I Registration . . . . 8 Bondholders'Risks . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27 � Redemption . . . . . . . . . . . . . . . . . . .. . . . . . .. . . . 8 General . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27 � Additional Indebtedness . . . . . . . 10 Federal Health Care Policy 27 � Estimated Annual Debt Service Requirements . . . 11 State Developments . . . . . . . . . . . 28 � Community Support . . . . . . . . . 12 Possible Increased Competition . . . . . . . 29 � Endowments and Bequests . . . . . . . . . . . . . . . 12 Other Risk Factors . . . . . . . . . . . . . . . . . . . . . . 30 � Fund Raising . . . . . . . 12 Matters Relating to the Security for the Bonds 30 � Volunteer Services Hill-Burton Funds . . . . . . . . . . . . . . . . . . . . . . . . . 31 .. . . . . . .. . . . . . . . . . . . . . . . 13 ( Management's Discussion of Historical Statements of Bond Ratings . .. . . . . . . . . . . .. . . . . . . . . . . . . . . 31 � Revenue and Expenses . . . . . . . . . . . . . . . . . 13 Definitions of Certain Terms . . . 32 � The Hospital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 Summary of Principal Documents . . . . . . 38 � General Background . . . . . . . . . . . . . . 14 Summary of the Bond Indenture 39 � History . . . . . . . . . . . . . . . . . . . . . 14 Summary of the Loan Agreement 44 Existing Facilities 15 Relationships Among Parties . . . . . . . . . . . . . . . . . 63 � Hospital Personnel . . . . . . . . . . . . . . . . . . . . . . . . . . 15 Tax Exemption . . . . . . .. . . . . . . . . . . . . . .. . . . . . . . . 63 �E Selected Operating Statistics 15 City of Decatur Not Liable on Series 1983 Bonds 63 �► Historical Operations 15 Underwriting . .. . . .. . . . . . . . . . . . . . . . . . . . . . . . . . 63 �; Other Indebtedness . . . . . .. . . . . . . . . . . . . . . . . . . 16 �scription of Ratings . . . . . . . . . . . . . . . . . . . . . 64 � Third Party Reimbursement Programs 16 Legal Matters _ 64 �' Proposed Corporate Reorganization . 17 � Plannin A rovals 17 Litigation . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64 8 PP . . . . . . . . . . . . . . . . . . . . . � Educational Programs . . . . . . . . . . 17 Historical Financial Informatiorf. . . . . 65 Cooperation A eement 1S Verification of Mathematical and Arithmetical � ffi' . . . . . . . . . . . . . . . . . . � Accreditations, Licenses and Memberships . . . . . . 18 Computations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65 � Board of Directors 18 Miscellaneous . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65 . . . . . . . . . . . . . . . . . . . � Administrative O�cers . . . . .. . . . . . . .. . . . . . . . 19 Appendix A—Financial Statements of the � Medical Staff Officers and Deparnnental Chairmen 2l Corporation . . . . . . . . . . . . . . . . . . . . . . . . .. . . A-1 � Medical Sta$ . . . . . . . . . . . . . . .. . . . .. . . . . . . . . . Y2'4 Appendix B—Form of Opinion of Bond Counsel . B-1