Aged care residents are twice as likely as other older Australians to be admitted to hospital because of a fall, a new report shows.

The Australian Institute Of Health and Welfare has examined the movements of older people aged 65 or over who spent time in hospital between 2008 and 2009.

It is the first analysis of how people already in residential care use hospitals.

Each year there are about 1.1 million hospitalisations of older people. In the year to 2009, almost 9 per cent of those admissions were for people living in residential aged care.

The majority of older Australians returned to their own home after discharge from hospital and 8 per cent returned to residential care.

The report says factors including age and dementia increased the likelihood of people aged 65 and over having to enter care after discharge from hospital.

Just over 4 per cent were admitted into transition or residential aged care and five per cent of older patients died in hospital.

For permanent aged care residents, the leading cause of hospital admission was respiratory conditions, while circulatory problems were the most common problem leading to admission for older people who live in their own home.