This paper details the development of aged care institutions in Feicheng city, east China Shandong province by carrying out extensive field researches and questionnaire surveys. Analysis showed that the number of aged care sectors in Feicheng had grown from less to more in recent years. More and more health care units, nursing homes, old aged day care centers and Happy Rural Care Homes have been established, equipped with enough beds and other care consumables. New intelligent management system has also been introduced for the wellness of the elderly. But some potential problems remain unresolved. For example, staff of some care sectors are either too old or less educated and trained. Experienced high quality care professionals and nurses are badly needed. Some institutions are now even woefully underfunded for their daily operation. As a result, qualified staff, full training, ample finances and premium quality standards should be guaranteed for the further improvement of aged care services.