While they walk Kelsey outside, Teddy tells her about how they made each other feel like home while they were in Iraq.

After the surgery, Bill tells Bailey that he is a proud father. He says he watched her repair a hernia and felt ashamed. He can't believe he traded her husband and family for the work. Bill tells her he made a terrible mistake by breaking her family.

Kelsey enjoys herself as the snow falls on her. After Hunt gives Cristina a jacket, she says Kelsey can die at any time. The doctors rush to Kelsey after she collapses on the ground.

Bailey informs Kelsey that part of her bowel died when she fell. Bailey asks her team to figure out how to fix her. They figure they can't give Kelsey anesthesia or she will die. Bailey asks Meredith if she can have Christmas dinner with her. She explains she has to put up a front that she has to put up a front for her father.

Derek, Mark and Arizona ask Webb for funding for Nicholas. After they explain they want to use their Christmas bonuses, Webb informs them they don't have any bonuses. The doctors decide to write checks to pay for Nicholas. Webb apologizes to Derek for trying to fire him.

As Hunt strums a Christmas song on his guitar, he notices Teddy watching him. Lexie and Sloan fight over money Sloan borrowed. Meredith's dad tells Meredith that Webber is an alcoholic and is drinking again. Meredith asks him if he was drinking when she was a kid and he says no. Meredith says they can't blame all the world's evils on alcohol.

While Bailey operates on Kelsey, she tells her she shouldn't cry. She encourages the doctors to sing Christmas carols to cheer her up. After the surgery, Bailey and Cristina meet with the others to have dinner. She updates the doctors about the condition of Kelsey. Bill tells her to mind her manners. Bailey says she outgrown her marriage. She says she chose not to settle and is happier because of it. She says part of her happiness is that she saved a womans life today.

The show jumps to New Year's Eve. Webb tells Meredith he quit drinking. Lexie asks Mark to ask Sloan when she is going to move out. Sloan admits she is pregnant which is the reason why she dropped out of school and her mom kicked her out. She says she feels like they are going to kick her out, but she has no other place to go. Mark gives her a hug to comfort her.