This report draws together the interim findings from the first two years of a three year evaluation of all first and second wave TPPs in England and Scotland which began in October 1995, led by the King's Fund. The report discusses whether first wave TPPs have developed the organisational requirements for effective purchasing, the extent of their achievements during 1996/97 (the first wave TPPs' first 'live' purchasing year), and the factors associated with their progress in terms of their contexts, the content of their objectives, and the processes adopted to implement total purchasing at each project. The report concludes by discussing the implications of the total purchasing experiment for the development of PCGs (primary care groups).