When she says "A more traditional public health model" does she mean that healthcare administrators no longer get to decide who gets to have a business?

Essentially, actually, yes. Specifically she was talking about local elected officials making local decisions, that was the model she was primarily talking about. Basically, she'd like to let local officials make decisions, but they're not making the decisions she wants, so she won't let them make decisions.

Also, which "tough decisions" is she talking about? I can't figure it out from the video...

Specifically she was talking about authoritarianism via mask mandates and, presumably down the line, the logic will apply to the passports everyone knows are coming. Local representatives wanted to keep things open, to not do that was the tough decision they were unwilling to make.