The former "The Tonight Show" sidekick claims Cedars-Sinai discharged him with the injury, and that the stairs a home where he was attending a dinner party in March 2007 were unsafe.
The hospital did not have any immediate comment.
The lawsuit gives new insights into the neck injuries McMahon discussed in a recent appearance on "Larry King Live." McMahon said he fell behind on mortgage payments because he was unable to work as a pitchman.