• Amazon, Berkshire Hathaway and JPMorgan are teaming up to form an independent, nonprofit venture that'll be focused on healthcare for their US employees.
  • Exactly what this new company looks like remains to be seen.
  • This isn't the first time large employers have banded together to form healthcare companies that take on the rising cost of healthcare.

Three massive employers are forming a new company to take on the "

Based on how few details were in the release about what this company looks like, the stock market's reaction looks quite dramatic. The news sent healthcare stocks plummeting on Tuesday morning, especially health insurers and members of the pharmaceutical supply chain.

Piper Jaffray health services analyst Sarah James wrote that she didn’t expect this new company to have a big impact on healthcare, especially given how past efforts haven’t made many waves. “Many have tried, but few have succeeded," she said. "We do not expect this JV to be a meaningful disruptor to the industry, despite the stock reaction indicating that it is.”

Barclays analysts said they didn't view "

For one, this isn't the first time employers have banded together in the name of lowering healthcare costs.

For example, 20 companies that cover about 4 million people formed the Health Transformation Alliance in 2016. The group has since swelled to more than 40 companies, covering 6 million lives, including Coca-Cola, American Express, and Macy's.

The intent behind forming the alliance was similar to Amazon/Berkshire Hathaway/JPMorgan's: "T

And in January, a group of hospitals, including Salt Lake City-based Intermountain Healthcare, Ascension, SSM Health, and Trinity Health, along with the Department of Veterans Affairs health administration (a group that in total represents 450 hospitals) announced theirplans to create a nonprofit generic drug company.

Their rationale? yearsskyrocketing drug prices