(a) The arbitrator shall not be bound by common law or statutory rules of evidence or by technical or formal rules of procedure. Upon compliance with section 380-9.7 of this Subpart, the arbitrator may make such investigation, inquiry, or conduct a hearing, in such manner as he or she deems proper and necessary, and shall have the power to issue subpoenas, in accordance with section 7505 of the Civil Practice Law and Rules.

(b) Medical examinations of the care recipient shall only be required when so directed by the arbitrator. In the event that the arbitrator directs the submission of a medical examination, it must be a records review unless the arbitrator can cite extraordinary circumstances warranting the submission of an independent medical examination based on a physical examination.