ALEXANDRIA BAY — River Hospital doesn't have to pay back $160,000 it owed to Samaritan Medical Center after all.

Samaritan Medical Center's board of trustees decided Monday to forgive the hospital's debt because the gesture demonstrated the improving working relationship both hospitals have sought over the past few years, said SMC spokeswoman Krista A. Kittle.

The money was sent to River Hospital for services rendered when the facility was known as E.J. Noble Hospital, which was then run by Samaritan.

River Hospital Chief Executive Officer Ben Moore III said he received the confirmation Wednesday from Samaritan Medical Center CEO Thomas H. Carman, and was delighted with the news.

"We are very grateful," Mr. Moore said. "We feel this puts us in good shape for doing things together and going forward."

He said the money was a Medicare reimbursement issue, because when the hospital was a part of Samaritan, two settlements totaling around $160,000 were credited to River Hospital, instead of the Watertown hospital.

"When we split off, that was something we had to consider repaying, so they basically said that's forgiven," Mr. Moore said. "That was a phenomenal gesture to us."

Since both hospitals have services along the St. Lawrence River, Ms. Kittle said, it's important for the two facilities to continue a working relationship.

"This was within our mission," she said.