The state's only free-standing psychiatric hospital said today it will lay off up to 15 percent of its approximately 200 employees.

'Ewa-based Kahi Mohala Behavioral Health said "a deep reduction in a longstanding contract with the Hawaii Department of Health Adult Mental Health Division" was the reason for the layoffs, which will take place through June.

Patients affected by the reduction of the state contract who are still in need of hospital care will be transitioned to the Hawaii State Hospital in Kaneohe.

"The loss of the contract leaves us with no choice but to downsize," said Leonard Licina, Kahi Mohala Behavioral Health chief executive officer, in a release. "We regret the hardship this presents our employees and their families and we are working with them to review their options to continue healthcare coverage and navigate unemployment benefits."

The community-based, not-for-profit Kahi Mohala is an 88-bed facility located on 14.5 acres in 'Ewa.

The facility is accredited by the Joint Commission, and certified by TRICARE and Medicare/Medicaid.

"Kahi Mohala will maintain quality service for its patients during and after this transition; as well as maintain a healthy environment for our workforce," said Barbra Pleadwell, Kahi Mohala Behavioral Health Board chairwoman.