MangalS,
How did your initial injury happen? Was it your shoulder that was injured or your spine? Or both?
What was the MRI examining? What areas of the body?
As far as physical therapy, depending on the injury, it can and often does make things worse for awhile before you see any benefit, but if you have been going for a year, and things are worsening, it would be a good idea to see your doctor again and get reevaluated.