MossRehab as we know it today began to emerge in the 1950s. The decision to become a rehabilitation hospital did not come easily. Many years of negotiation and exploration took place before the leaders of the Lucien Moss Home decided to apply for hospital construction funds under the federal Hill-Burton Act. In 1957, Hill-Burton awarded the funding and at the recommendation of the Jewish Federation, Martin Kaplan was appointed the Home's executive director. In 1959, ground was broken at 1200 West Tabor Road for the new facility – Moss Rehabilitation Hospital (later to become MossRehab).

In 1961, MossRehab began a long process of transformation. In order to reshape its nursing home image, the MossRehab board made a point of actively identifying the hospital with modern medicine. To achieve this goal, they established a research agenda. In 1966, MossRehab received its first outside research grant of $500 to test drugs for the National Drug Company of Philadelphia. This was just the beginning of MossRehab's journey to become one of the most respected rehabilitation research institutes in the country. Although MossRehab was becoming a much more clinically advanced hospital, it still remained true to its original mission – improving the quality of life for its patients.

In the 1970s MossRehab became a major advocate for people with disabilities in the community and beyond. In 1979, MossRehab sponsored its first art exhibition for people with physical disabilities. MossRehab also created a driving school in 1976 to teach individuals with disabilities how to become safe and independent drivers.

Groundbreaking for the new Moss Rehabilitation Hospital (circa 1959)