This study investigates 28 nursing homes in Xiamen, By means of Data Envelopment Analysis(DEA), the efficiency was first assessed through 4 input and 3 output variables. In the second stage analysis, Spearman's rank correlation and the Mann-Whitney tests of hypothesis to the efficiency scores were applied to select what are the factors that affect efficiency, then followed by Tobit regressions to fit the quality factors, we find that, the efficiency is negatively correlated with the total value of fixed assets and whether it is affiliated to hospital. Based on that, some suggestions are put forward to help the development of nursing homes in China.