Leading mental health expert Patrick McGorry warns young people with early psychosis could become at greater risk of suicide, as the Turnbull government prepares to scrap funding for the specialist treatment program he helped establish.

The Early Psychosis Youth Services (EPYS) program is administered through six centres across the country, where teams work with young people aged between 12 and 25 who are at high risk of, or have experienced, a psychotic episode for the first time. The psychosis can involve hearing voices or believing delusions.

The program, introduced by the Gillard government and supported by Tony Abbott in opposition, involves specialist teams that treat patients, while also helping them secure accommodation, return to school or find work. They also support families to improve patients' chances of recovery.

The Department of Health told the centres this month that it had "decided to discontinue implementation of the EPYS model of care" in a letter obtained by Fairfax Media. The department will cut centres' $156 million funding to 75 per cent this year, and down to 30 per cent next year.