This is always the conundrum that people don't like to discuss but I think is worth discussing.
For very early-stage companies where the total employees (and potentially revenue) can be counted on one hand, all hires are critical.
So a single hire who goes on extended medical leave, or sends your insurance rates through the roof can literally kill your company. Is it the person's fault? Not at all, but you are still left dealing with the consequences.
I wonder how early-stage companies draw this line and deal with this type of decision assuming the reason is not related to any of the protected classes from a hiring standpoint.