The recently discovered ''ladder'' compound LaCuO2.5 has been found to
admit hole doping without altering its structure of coupled copper ox
ide ladders. While susceptibility measurements on the parent compound
suggest a spin gap and a spin-liquid state, NMR results indicate magne
tic order at low temperatures. These seemingly contradictory results m
ay be reconciled if in fact the magnetic slate is near the crossover f
rom spin liquid to antiferromagnet, and we investigate this possibilit
y. From a tight-binding fit to the valence band structure computed in
the local density approximation, we deduce that the strength of the in
terladder hopping term is approximately half that of intraladder hoppi
ng, showing that the material is three-dimensional in character. A mea
n-field treatment of the insulating magnetic state gives a spin-liquid
phase whose spin gap decreases with increasing interladder coupling,
vanishing (signaling a transition to the ordered phase) at a value som
ewhat below that obtained for LaCuO2.5. The introduction of an on-site
repulsion term, U, to the band scheme causes a transition to an antif
erromagnetic insulator for rather small but finite values of U, reflec
ting the predominance of (one-dimensional) ladder behavior, and an abs
ence of any special nesting features.