Tasmania is bracing to hit 2000 daily COVID-19 cases within weeks, as dozens of staff from the state's largest hospital are furloughed.
The island state reported 702 new coronavirus cases on Tuesday, eclipsing its previous mark of 466 a day earlier.
Active infections have risen to 2244 cases, and 2088 tests were processed on Monday.
Health Minister Jeremy Rockliff has warned daily cases will rise further, along with the number of COVID-related hospital admissions.
"Over the next few weeks, we may have some 2000 cases per day," he told reporters in Launceston on Tuesday.
"Our health system is prepared and expecting to deal with any eventuality."
Up to 40 staff at the Royal Hobart Hospital have been furloughed after testing positive or being identified as close contacts, placing further pressure on its workforce amid others taking leave during the holiday period.
In a statement, State Health Commander Kathrine Morgan-Wicks says there is no evidence of COVID-19 transmission in any state hospitals.
To cope with absent staff, outpatient activity will be reduced and the scheduled resumption of normal surgery levels from Sunday is now under review.
A respiratory clinic separate to the hospital's emergency department could also be set up, while staff are being asked to reconsider leave arrangements.
"These measures are being implemented at the RHH site only. Other sites, including regional hospitals and community health centres remain as business as usual," Ms Morgan-Wicks said.
Opposition Leader Rebecca White says the government's claim the hospital system can cope with rising COVID-19 infections ignores the thousands of people whose care could be disrupted.
"There are real concerns in the community about the government's ability to handle COVID, with the health system already under incredible pressure," Ms White said.
Tasmanian Greens health spokeswoman Rosalie Woodruff has urged the premier to reconsider his strategy.
"The premier must stop trying to normalise Omicron and put the health and safety of Tasmanians and local businesses first," she said in a statement.
While acknowledging some hospitality businesses have closed due to contact tracing-related staff shortages, Tourism Industry Council Tasmania chief executive Luke Martin insists more border disruption is not the answer.
"It is not a time for panic, or reactive responses like slamming the borders shut again," he said.
There are currently three cases in hospital across the state, with one being treated specifically for COVID-19 and two positive patients for other conditions. No one is in intensive care or on a ventilator.
Seventy-one cases are being cared for at community case management facilities and 275 are being managed at home.
There is yet to be an update on the results of testing 60 passengers and 30 staff from the Coral Discoverer cruise ship, after two COVID-positive people were taken off the vessel on Monday.
However, Mr Rockliff confirmed there is a positive case on King Island, off the northwest coast of Tasmania.
