The leprosarium of Contratación was established in 1861. It officially closed in 1961, when the Colombian government passed a law (Ley 148) abolishing the forced isolation of people affected by leprosy. It was then recognised as a municipality, but it continued to provide free health services to leprosy patients, many of whom still lived there as of 2013.
A publication by Alvaro Ruiz Arenas (in Spanish) chronicles the history of the Contratación colony. It can be accessed here (PDF, 225 pages).
Entry updated March 2016
Source
Cardona-Castro, Nora. “Leprosy in Colombia: post elimination stage.” Leprosy Review 84 (2013): 1-10.