(a) Every provider subject to examination in accordance with this act must keep all books, records, accounts, papers, documents and any or all computer or other recordings relating to its property, assets, business and affairs in such a manner and for such time periods as the department, in its discretion, may require in order that its authorized representatives may readily verify the financial condition of the company or person and ascertain whether the company or person has complied with the laws of this Commonwealth. A multifacility provider may be required to provide the financial statements of the component parts at the request of the commissioner or his designee. Unless specifically directed otherwise by regulations promulgated by the department, the financial statements need not be certified audited reports.

(b) The department or any of its examiners may conduct an examination of the books and records of each provider offering continuing care in this Commonwealth as often as the commissioner, in the commissioner's sole discretion, deems appropriate, but shall conduct an examination at least once in the first five-year period and once in the second five-year period following a provider's receipt of a certificate of authority under this act.

(c) In scheduling and determining the nature, scope and frequency of examinations under subsection (b), the commissioner shall consider matters including all of the following:

(d) For purposes of completing an examination of a provider, the department may examine or investigate any person or the business of any person insofar as the examination or investigation is, in the sole discretion of the commissioner, necessary or material to the examination of the provider.

(e) Examinations under this section shall be conducted pursuant to the procedures set forth under sections 904, 905, 906, 907 and 908 of the act of May 17, 1921 (P.L. 789, No. 285),¹ known as The Insurance Department Act of 1921, and 31 Pa. Code Ch. 12² (relating to cost of insurance department examinations).