Dude meets Blob

I have knocked up a little blob creature in Fireworks and added it to my game. This one is a Blob monster, because I thought that would be the easiest to draw and animate. I have implemented collision detection, but at the moment nothing happens when you touch the Blob.

(And yes, I am aware of the irony when I say "my guy has no life")
I need to develop some sort of life gauge to indicate Dude's state of health.