This work aims to use the analytic hierarchy process (AHP) tool to develop the model of industrial competitiveness in the nursing homes of eleven provinces in east China. The original data is from China Civil Affairs Statistical Yearbook 2020. The results show that Jiangsu province has the highest competitiveness in the elderly care industry among the eleven provinces in east China, and Hainan province has the lowest competitiveness. The competitiveness of the elderly care industry varies among the eleven provinces in east China. The ratios of beds to medical staff, the ratio of nursing homes, per capital fixed assets in nursing homes, and the number of unable self-care elderly are the four main influential factors across the competitiveness of the elderly care industry and indicates that the nursing homes competitiveness is affected by multiple factors from multiple levels. A differentiated strategy should be taken according to the circumstances in different provinces to rationally develop the elderly care industry, improving efficiency, the level, and quality of services in the nursing homes.