CVS Health Corp. may have tumbled Tuesday morning, on the heels of Amazon.com Inc.'s (AMZN) health care alliance with JPMorgan (JPM) and Berkshire Hathaway, but the retail clinic chain shouldn't fret -- at least not yet.
f anything, insurance companies and pharmacy benefit management organizations like Humana Inc., Express Scripts Holding Co. and Cigna Corp. have more to worry about, according to Oppenheimer analyst Mohan Naidu, because of the proposed partnership's not-for-profit model.
"They have nothing at this point, no health plan or network of providers," Naidu said. "But they are disrupting the ecosystem of healthcare by saying that the new entity won't be focused on profit, which will disrupt margins for the middlemen."
And that's not to mention, the product itself is unclear.
"Are they going to form an insurance company? Are they going to apply technology in other ways? We have no idea," said Tom Charland, the founder and CEO of Merchant Medicine, a firm that tracks retail health clinics. "Clearly, they're not going to tell their employees to stop using their primary physicians. They're probably not going to build hospitals. They don't have doctors or facilities, both of which CVS has."
Watch TheStreet's investing interviews on Youtube