Going from reports of people who have been admitted in Germany,
this is as soon as they report breathing difficulties,
or if the health teams - who regularly visit the sick ones - find deterioration in their monitoring of blood O2, BP, heart etc
Hospital is not only about receiving O2 though:
In hospital there are lung Xrays to confirm COVID - often more reliable than tests - and to see the state of the lungs
There are tests for non-COVID infections that they may have picked up with their immune system weakened - prompt antibiotics or antivirals can head off these getting more serious
It is about actually treating patients as early as possible, as much as they need,
heading off further deterioration
which can prevent them ever needing ICU
It's even about reassuring them that they are getting the best possible treatment, so they don't get panicky