Thunder Bay is alright. There isn't too much to do, but we've a fair share of restaurants and bars to check out, but we've yearly visit by the CLE. If you're into music there's always Bluesfest at the Marina (but I think it's kind of lame) and a really cool record store nearby, which will sometimes host its own events.
As far as public transport is concerned, I'm pretty sure we get our buses second hand from Toronto. There are two actual terminals, one by city hall, the other by the Marina. The college, mall and university also act pretty much as terminals, too. So you won't have much of an issue getting to the LU. Routes are pretty extensive, you're likely to get wherever you're going just by bus. The only thing that might be a problem is that the hospital is quite out of the way, and I'm not sure if buses go that far out.
If you want, you can get routes and schedules here: http://www.thunderbay.ca/Living/Getting_Around/Thunder_Bay_Transit/Maps___Schedules.htm
I'm getting to Toronto by car, but I'll be flying out at Pearson.