If Alex is wondering where Izzie is, she is making her case to the Chief. Here's a summary: Chief: Budget! Budget! Budget! Izzie: Do it! Do it! Do it! Chief: Budget! Budget! Budget! Izzie: I gave you eight million dollars! Chief: Do it. Outside, Bailey watches the exchange suspiciously.
Arizona and Teddy are paged by Cristina and Dr. Avery to examine a kid with asthma. While Arizona examines the X-rays, Teddy takes a good long listen to the kid's heart. She asks a few questions about his medical history and concludes that they need to book an OR. Cristina balks because she thinks the kid has asthma. Teddy, full up of both all the history and of Cristina's attitude, snaps. She tells her that the kid has cardiac asthma, is in the middle of a heart attack right now, and needs surgery. Also, she's her attending and told her to book the goddamn OR. Cristina looks annoyed, but Arizona smiles at Cristina that she likes Teddy. Heh. Arizona's awesome. But can someone please explain to the poor kid's mother what the heck is going on? Thank you.
Bailey goes to stick her foot further in her mouth and asks the Chief whether he is having an affair with Izzie. Bailey, didn't I tell you NOT TO TALK TO ANYBODY? She tells the Chief that she is going to say a name and he will then tell her that he is not having an affair with her. She says: Izzie Stevens and the Chief just about dies laughing. Bailey, being stalwart and brave, continues to lay out her case that the Chief is sleeping with Izzie: he ignored the DNR, he fired her, they were yelling at each other. The Chief chortles through her entire opening argument, but Bailey is dead serious. And so was his mistake this morning. She ran the test and it looks like the Chief clipped the common bile duct on his patient. So he better stop laughing. He does. Bailey is prepared to do the repair. She assures him that no one knows about his error and no one will. But whatever or whoever is distracting him, he needs to get a handle on it.
Arizona, Teddy, and the two residents are operating on the sick little kid. The coronary artery is attached to the pulmonary artery, not the aorta. This discovery makes Dr. Yang reevaluate her new teacher. Then the cute little birdies on Teddy's scrub cap make her reevaluate her reevaluation. Teddy explains how she knew that the kid's heart was screwed up: she heard a hollow systolic murmuring and saw something on his x-ray. If no one thought it was cardio, why were Yang and Avery there and why did they page Teddy? Whatever. Teddy is a cardio god and Cristina needs to bow. Teddy reassures the residents that next time they'll know how to diagnosis it and after today, Dr. Yang will know how to fix it. Cristina is flummoxed, but Teddy asks Arizona if she minds if Dr. Yang first assists, and Arizona willingly steps down. Cristina is completely stunned but takes the scalpel and begins.