Halladay, the Cy Young Award winner as his league's best pitcher in 2003 and 2010, was scheduled to have surgery as early as next week when doctors also plan to clean up fraying in his labrum and rotator cuff.
The right-hander visited Dodgers physician Neal ElAttrache in Los Angeles on Monday and was diagnosed after having an X-ray and MRI.
"The doctor seemed pretty optimistic ... I could come back and be a lot more effective and have a chance to pitch this year and turn back the clock," Halladay told reporters before the visiting Phillies played the San Francisco Giants at AT&T Park.
"I thought it was very good news. Obviously I don't want to miss time, but I think as far as scenarios go, I feel like it's a lot better than some of the things I anticipated."
Halladay began to feel pain in his shoulder after his April 24 start against the Pittsburgh Pirates, then allowed 17 runs in just six innings in his last two outings before informing the Phillies he was no longer able to pitch.
"My biggest concern was I couldn't throw the ball where I wanted," said the 35-year-old. "I wasn't concerned about velocity; the pain wasn't overwhelming. I couldn't understand why my location was so poor..
"I didn't know if they had to tighten something up, I really didn't know.
"I kind of felt like it was good news, that I have a good chance to come back and pitch and help us try to get to the World Series. That's the ultimate goal. That's why I'm playing."
Halladay, who missed almost two months last year because of a strained back muscle, is 2-4 with an 8.65 ERA in seven starts this season for the Phillies, who at 16-18 were in third place behind National League East-leading Atlanta.
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