McMenamin reported earlier that Hill was questionable for Game 4 while battling back spasms.
Hill has largely been able to stay healthy this season. He missed 10 games for the Sacramento Kings, though some of those absences were in late December and early January when his girlfriend gave birth to their daughter.
After being acquired by the Cavaliers on Feb. 8, Hill started 22 straight games. He missed four games with an ankle injury suffered on March 30 against the New Orleans Pelicans before he returned with two games remaining in the regular season.
Lue also announced Jose Calderon will replace Hill in the starting lineup, which is less than ideal for the Cavs as they look to even up their first-round series with Indiana.