Amazon, Berkshire Hathaway, and JPMorgan Chase on Tuesday announced plans to partner on ways to cut health-care costs and improve services for their U.S. employees. The announcement slammed the shares of multiple companies in the health-care sector.

Together, the three companies employ more than 1.1 million workers.

The three massive companies will launch an independent outfit initially targeting technology solutions, with the intention to be an umbrella firm that would be “free from profit-making incentives.”

Details of the new company were sketchy, with principles of each firm noting that the way it will work remains to be seen. They’re hoping that the sheer size of each firm will help bring the necessary scale and resources to tackle the issue.

“The ballooning costs of healthcare act as a hungry tapeworm on the American economy,” Berkshire CEO Warren Buffett said in a statement. “Our group does not come to this problem with answers. But we also do not accept it as inevitable. Rather, we share the belief that putting our collective resources behind the country’s best talent can, in time, check the rise in health costs while concurrently enhancing patient satisfaction and outcomes.”

Three top executives, one from each company, will take the lead on the project: Investment officer Todd Combs at Berkshire, Marvelle Sullivan Berchtold at JPMorgan, and Beth Galetti, a senior vice president at Amazon.

The new company’s goal at first will be to target technology solutions to simplify the health-care system.

“Health care is ripe for disruption. A combination of a great reinsurance and an online base and insurance company could result in something that helps bring down costs for the average American. I view it as positive. The incumbents are going to be under pressure,” Carmel Wellso, Janus Capital Director of Equity Research told CNBC.

Leerink Partners’ Ana Gupte said the comments suggest the leaders view the endeavor as one that’s “complex, challenging and thorny and that will take time to bear fruit.”

“It is unclear if this means (Amazon) will accelerate its entry into the pharmacy supply chain, though the quest for transparency, which is lacking currently in drug pricing and also in broader healthcare delivery in America, would point to a more transformative effort by the new entity,” Gupte said in a research note.

Adam Fein, president of Pembroke Consulting, said it’s “long past time” for employers like these three to force innovation into the health-care system.

“For better or worse, there are warped incentives baked into every aspect of the U.S. healthcare system, from medical innovation to care delivery to insurance and benefit management,” Fein told CNBC. “Rather than merely bashing the current system, I hope this new organization can help patients and their physicians make more informed and more cost-effective decisions. Technology will be necessary but not sufficient to make positive changes.”

Shares of each company were little changed in premarket trading.

However, shares of other leaders in the industry fell sharply. CVS and UnitedHealth each were off about 7 percent in premarket trading and ExpressScripts fell nearly 7 percent and Aetna was down nearly 3 percent.