Educators nationwide focused on Philadelphia in the summer of 2001 as politicians and policy makers explored the possibility of a state takeover of the city's school system, a seismic power shift that would produce the largest privatization of a public school district in American history. The findings reported in this document are based on analysis of interviews with 20 principals in schools operated under the diverse provider model and with 10 representatives from providers and the district central office. Each principal was interviewed 3-4 times. All interviews were conducted during the second half of the 2002-2003 school year--the first year of the new reform.