I was told by the director of admissions at a medical school that it went like this:
When you apply, they don't know where else you are applying to, or have been accepted to.
Once that school accepts you, and only once they accept you they get access to the list of other schools that you have been ACCEPTED to. I think this helps them in deciding scholarship information or something.
I dont think they ever get to see where else you applied.
but then, I could be totally wrong. SDN is all hearsay, haha