In 1998, the government of Ontario announced a plan to address the needs of Ontario's aging population, including the creation of 20,000 new long-term care beds by 2004. In spring 2001, Toronto Rehab received approval to build a new l28-bed long-term care facility in Parkdale. This area of the city was identified by the Ministry of Health and Long-Term Care as having an increasing proportion of aging residents and a lack of long-term beds.

Toronto Rehab operates the Queen Elizabeth Centre, a complex continuing care facility at 130 Dunn Avenue. It also owns the land to the north and south of the Centre, providing a logical location for the new long-term care facility.

The establishment of Lakeside Long-Term Care Centre reflects Toronto Rehab's commitment to providing innovative and effective services across the continuum of care - from inpatient and outpatient rehabilitation to complex continuing care and long-term care.