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Whilst most chronic diseases common amongst older adults such as arthritis and diabetes can't necessarily be cured, they can usually be controlled with medication and other treatments. Traditionally people with such diseases have been discouraged from exercising, however more recent studies have found that exercise can actually improve many of the chronic conditions in most older people AS LONG AS IT'S DONE WHEN THE CONDITION IS UNDER CONTROL.
For example, people with congestive heart failure (CHF) tend to have muscles waste away badly leaving them weak and to a point where they can't perform every day tasks. No medicine as of yet has a direct muscle-strengthening effect in people with CHF however often muscle-building exercises (such as lifting smaller weights) can help improve muscle strength in people affected.
Having a chronic disease most likely doesn't mean that you can't exercise. What it does mean is that keeping in touch with your doctor is of great importance if you do exercise.
For example, whilst some studies suggest endurance exercises like brisk walking may improve the health of heart and lungs amongst CHF sufferers, however this ONLY applies to people who are in a more stable phase of the disease. Like most people with chronic diseases, CHF sufferers have periods of worsened and bettered conditions and it's important if you're going to exercise to know how to tell whether your disease is stable enough for exercise. Discuss with your doctor the symptoms that mean trouble or an acute phase in the disease or how you feel when you are in a more stable or under control period.