Alternate delivery system (ADS)

1. Any health care delivery system other than traditional fee-for-service (e.g., health maintenance organization [HMO], preferred provider organization [PPO], individual practice association [IPA]). 2. Provision of health services in settings that are more cost effective than an inpatient, acute-care hospital such as skilled and intermediate nursing facilities, hospice program, and in-home services.

Alternative basis clause

A business interruption policy clause to provide the insured with an alternative basis for adjusting a claim when the interruption is short and the turnover method impractical. The practice is for the insurer and the loss adjuster to calculate the loss on a ‘sales value of output’ basis, provided that the lost output cannot be regained within the indemnity period. Insurers are sufficiently flexible in their approach to allow this practice to be adopted even if the clause is not included.