MOULTRIE — Colquitt County Commission agreed Monday to settle a lawsuit filed last year by a company that provided health care at the jail and correctional institution over a three-year period.

Commissioners unanimously voted to the $7,000 settlement with the Chattanooga-based Southern Health Partners. The commission closed the meeting for about 20 minutes to discuss the litigation, and after reopening the public meeting agreed to accept the settlement.

The company filed suit in 2008 seeking about $38,000 it claims was owed to it after the county declined to renew the contract at the end of 2007.

County Attorney Lester Castellow said Tuesday that the county agreed it owed some truing-up costs at the end of the contract period but the amount was substantially less than the amount the company claimed. It countersued seeking documents that would substantiate the company’s claims, he said.

“We always said we owed them some money,” he said. “Over the course of the last several months we have examined documents. We worked closer and closer. Finally we reached an agreement.

“The bottom line was they sued us for $38,000 and some change and we settled for $7,000.”

Castellow said that the documents finalizing the settlement could be signed within about a week.

Castellow said Southern Health Partners provided health care for inmates for from 2005 through 2007, but commissioners had “disagreements” over accounting with the company that ultimately lead them not to renew the contract.

Commissioner Billy Herndon said following Monday’s meeting that since canceling Southern Health Partners’ contract the county has been providing medical care to inmates.

Also on Monday the commission agreed to continue discussions on the county’s pension system with a work session at 6 p.m. Nov. 23.

The county created a pension board in July 2008 and has met to discuss the issue several times since.

In July, commissioners noted that the pension plan began in 2008 with a balance in its self-funded plan of $7.41 million and ended the year with $6.28 million. Contributions and administrative costs also had climbed in recent years, accounting for 13.3 percent of total payroll costs, an amount commissioners said is not sustainable.

The county also took a hit in stock-market losses, and as of July the plan was only 69.6 percent funded.

In other business Monday the commission:

• Approved a renewal of a lease agreement with the Georgia Department of Human Services. Under the lease the state will pay $32,753 per month for the use of the Department of Family and Childrens Services office at 449 N. Main St.