Alex and Jo. Baby surgery. "Can people who hook up on the job make it work?" Is Jo gonna end up pregnant? Good lord, as if this could get worse. The baby is like, "Fuck it, I'm ending this idiot conversation right now" and blows an intestine or something. I appreciate your dedication, baby. Alex and Jo scramble to save the baby.
Smash comes running to answer Derek's page -- he thinks it's about the AVM surgery, but really, Derek is about to go to a Pegasus photo shoot. It's not real surgery, just dress-up, but since Smash seemed so keen on the posters, Derek thought he might want to join. Smash politely declines. He's rather look in on the actual medical procedure Cristina's doing than pretend to do surgery with Derek. Hearing it out loud like that really brings it home to Derek. Troubled, he wants past a giant head-poster and grumbles.
Owen is having ZERO FUN at this nurses' meeting. They're all agitating about the various terrible things the Pegasus takeover means for them, and he has no answers for them. Afterwards, Cahill starts chastising him about getting control over his people, but they don't have time for that argument because, at the same time but from different directions, Derek and Bailey are coming at them. Derek wants Cahill to know he's not cool with being a covergirl anymore, while Bailey wants to make her case to Owen for the genetic screening. After a moment of bickering, he finally tells Bailey that HE shot the proposal down before it even got to the board, because he knew it would be turned down. I guess a guy can only fight so many battles a day. Derek stops his argument to let this moment land, further proof that Seattle Grace is not Seattle Grace anymore. Bailey gets her scary-as-fuck Bailey Face on and is like, "YES SIR! Never mind, then!" She stomps off, and Derek gives Owen the "I'm not mad, I'm just disappointed" face and leaves himself.