Community Health Systems Inc. said it would sell 80% of its home health and hospice business to Almost Family Inc. as its works to reduce its size and pay down debt.

Almost Family is buying the stake in CHS Home Health for $128 million. The unit provides of skilled home health and hospice services and currently operates 74 home health and 15 hospice locations across 22 states.

The deal, which is expected to close in the fourth quarter, is one of several recently announced by Community Health as it works to pay down its multibillion-dollar debt load built up by years of expansion.

Community shares rose 0.3% to $10.05 in premarket trading. Almost Family shares were inactive.

Write to Austen Hufford at austen.hufford@wsj.com

(END) Dow Jones Newswires

October 17, 2016 09:25 ET (13:25 GMT)

Copyright (c) 2016 Dow Jones & Company, Inc.
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