A case is presented of acute intraoperative atelectasis causing profou
nd hypoxaemia in a patient undergoing a combined epidural-general anae
sthetic for hip surgery in the lateral position. The pathophysiology o
f the resultant ventilation-perfusion mismatch and the effects of appl
ied positive end-expiratory pressure in the lateral position are explo
red. The emergency management is assessed with emphasis on the role of
bronchoscopy in diagnosis and treatment of this rare cause of life-th
reatening hypoxaemia in the operating room. This patient with risk fac
tors for respiratory complications may have benefited from preoperativ
e bronchoscopy to assist in lung expansion.