Medford, OR — A contentious legal battle over the ownership and control of Medford-based Advanced Care Health Systems, LLC (ACHS) has finally come to a conclusion, with the once-promising health care business now dissolved. The case, which involved Lakiesha Sheaffer, a licensed Nurse Practitioner, and Michelle MacGregor, a registered nurse, drew significant attention due to the high-stakes nature of their dispute.
The conflict began in March 2023 when Sheaffer and MacGregor co-founded ACHS to operate a health care clinic in Medford. However, disagreements quickly surfaced regarding the business’s ownership structure and day-to-day operations. Tensions between the two partners escalated, leading Sheaffer to seek legal action and file for a temporary restraining order to prevent MacGregor from making decisions that might destabilize the clinic.
Central to Sheaffer’s argument was Oregon law (ORS 58.376), which requires that licensed health care practitioners maintain majority control over health care businesses. Sheaffer, who holds such a license, contended that MacGregor, a registered nurse, did not meet the legal criteria to independently control the company. Court documents detailed MacGregor’s alleged overreach, including interference with staff, unauthorized access to confidential information, and the improper withdrawal of business funds.
The rift deepened in November 2023, when MacGregor’s attorney sent a letter demanding that Sheaffer stop receiving salary distributions, further intensifying their already strained relationship.
Adding a significant legal twist, MacGregor was found in contempt of court on July 7, 2024, for violating a Stipulated Order of Temporary Restraint issued earlier in March. The order, designed to protect the business from unilateral actions by either party, was reportedly disregarded by MacGregor, prompting Sheaffer’s legal team to seek remedial action. The court found that MacGregor’s failure to comply with the order played a key role in ACHS’s dissolution.
In the months following the court’s contempt ruling, ACHS officially ceased operations, leaving its employees and approximately 2,000 patients in a precarious situation as the business wound down. The Jackson County Circuit Court ultimately ruled in favor of Sheaffer’s request to dissolve the business, citing irreconcilable differences between the partners and ongoing legal violations by MacGregor.
This case highlights the complexities of business partnerships in the health care industry, where legal obligations, professional licensing, and regulatory compliance intersect. The dissolution of ACHS marks the end of a tumultuous chapter for Sheaffer and MacGregor, but the contempt finding against MacGregor underscores the serious legal consequences of failing to comply with court orders.
For now, the clinic that once held promise to serve Medford’s health care needs no longer exists, and both former partners must navigate the aftermath of their dissolved business and fractured relationship.
