That is simply not true. In Italy they had empty rooms and everyone that needed to get treated got treated. The problem was the treatment given exacerbated the virus and vulnerable people died.
Q: If that one person is 78 years old, is his chance of survival still 99.98%?
A: No, his chance of survival is about 60%
Q2: You can't just apply a percentage willy-nilly to everything. This is not how things work.
Yes, you can you twat: The 99% survival rate takes that 78 year old and his ~60% survival rate into account given that children have literally 0% death rate
and adults up to ~60 years old have 0.4% death rate
and considering that the overall age demography for canada has people over 60 only account for about 25% of population. So you have 60% survival rate for 1/4 of the population and 99.98% for 3/4 of the population.
https://www150.statcan.gc.ca/t1/tbl1/en/tv.action?pid=1710000501
Hell you can even throw people with known conditions and diseases in there and your argument still won't hold water.