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That would be the least bad outcome given an already miserable pandemic. How omicron pans out in reality will depend on the balance between increased rate of spread and decreased severity. Hospitals could still be overwhelmed if the balance tips in the wrong direction.

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Hospital system collapse is the most pessimistic outcome. Hospitals have spent the past two years not bulking up their personnel and infrastructure, so I don't think even the medical industry earnestly considers that a serious threat. The most realistic worse case scenario is the unvaccinated get triaged out of the hospital system.

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