It's a dark and stormy night as four Seattle Grace docs discuss the notion of buying the hospital. Callie is most gung ho about the idea. Meredith is leaning that way, too. Derek thinks they should probably stay the course. Cristina is MIA during the meeting because she's busy having sex with Owen. Arizona is dead set against throwing all of their money into this venture. She feels Derek wants to save the day because he feels guilty about his decision to sue.
Derek Shepherd has a big head. Literally! Giant photos of him are plastered all over the hospital. He's the face of Seattle Grace. Owen appreciates that he put himself out there like that. It has him feeling like he's not alone in his efforts to save the hospital. Derek does want to save Seattle Grace, but in a different way. He has his financial adviser, Stan, lays out how they can take control of the business. He just needs a copy of the hospital's financial statements. Oh, and Owen can't know anything about their plan.
A grateful father breaks down in tears when Bailey tells him there's hope for his young kid with cancer. They can do a genome mapping procedure that would avoid the need for surgery. All that's needed now is approval from the hospital advisory board. That's not going to happen. Owen puts the kibosh on the procedure because it'll never get approved. This has Bailey recommending her patient find another hospital—one that cares. She doesn't believe in Seattle Grace anymore. She wants to quit.
Paramedic Matthew asks April out on a date. A real date. As awkward as it is, April seeks advice from Jackson. She worries that Matthew will bail on her when he finds out she re-virginized. Jackson's flippant attitude makes April sorry she brought it up. He later tells her to show him who she truly is. Before April can do that, Matthew confesses that he's saving himself for marriage. He's a genuine virgin. April reveals she's also saving herself, but neglects to mention that it's in a re-virginized way.
Alex and Jo work to save a newborn. The parents are coworkers who can't stand each other, but they love their baby. Jo and Alex discuss the futility of workplace relationships. As for the baby, the bickering parents decide on a course of action for their child in a venomous, bizarre exchange. As for the workplace relationship thing, Alex says he thinks it could work. That's why Jo asks out an OB resident who's been nicknamed Chest Pecwell by all fawning interns. Alex is confused and bummed when he sees this.
Owen desperately tries to keep the nurses from initiating a walkout. The interns are also unhappy and looking for work elsewhere. As for the nurses, Owen's initial meeting with them does not go well. Alana says he needs to convince them that the Pegasus plan is for the best. She believes Owen has a quality that makes people think everything is going to be okay. The pep talk works. Owen convinces the nurses to stay. He then learns that the Pegasus deal is going forward immediately. Cristina lets her friends know that they need to act now.
Someone is defacing all those giant pictures of Derek. Richard catches the culprit. It's Shane. It's cool though. The young intern was simply following Derek's orders to make his big head as unsightly as possible. In other news, the Pegasus folks are all set to close the deal until their meeting is interrupted. Derek walks in to tender his resignation. Meredith, Callie, Arizona and Cristina follow his lead. They all quit. Owen is stunned and the Pegasus deal is dead.
Alana thinks everything is ruined, including her career. Owen lets her know she needs to snap out of it. She needs to get back Pegasus or find another buyer because she's all he has left. Owen then pounds on Cristina's door while stuck in the pouring rain. She's not home. She's meeting with her partners in resignation. Some of the names they float out for their new corporation are "The Bitter Pills," "Epic Failure," "Death Spiral" and "Blind Leading the Blind, Inc." They should probably come up with a few more options.