St. Michael's Hospital (SMH) is a teaching hospital fully affiliated with the University of Toronto, with more than 5,000 staff, including 600 physicians teaching more than 1,600 students. Recognized for its excellence in clinical education, SMH is a research leader in many areas including inner city health, cardiac gene therapy, trauma/critical care, and global health. This well-known hospital, affectionately known as the "Urban Angel," has a long and proud history of caring and compassion, serving the sick and the poor of Toronto's inner city since its establishment in 1892.

Mr. Li expressed his great admiration for the dedicated service SMH is providing the community: ''Today the world feels bombarded by all kinds of ‘isms' that are loud in their demands but complacent to their own failings; it is easy to feel that many lack a generosity of spirit that is essential to caring for others and looking out for society's constructive progress. In these times, it is refreshing and touching to know that an institution has stayed true to its commitment to progress and care throughout the years.''

The Foundation’s donation will fund the establishment of a unique center, combining research and education. Called the Li Ka Shing Knowledge Institute, the center aims to establish the first prototypical academic/clinical knowledge translation partnership at one of Canada's leading teaching hospitals.

The Li Ka Shing Knowledge Institute will comprise two centers with a total gross floor area of 285,500 square feet. Construction of the institute commenced in spring 2006 and completion is scheduled for 2009.