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OBJECTIVES: Physical inactivity has been associated with significant increases in disease morbidity and mortality. This study assessed the association between physical activity and (1) health resource use and (2) health resource use costs. DESIGN AND PARTICIPANTS: The responses from 24 281 respondents >65 years to the Canadian Community Health Survey Cycle 1.1 were used to find activity levels and determine health resource use and costs. Logistic regression models were used to assess risks of hospitalisation. RESULTS: Physical inactivity was associated with statistically significant increases to hospitalisations, lengths of stay and healthcare visits (p65 years, physical activity is strongly associated with reduced health resource use and costs. [ABSTRACT FROM AUTHOR]