"I also figured out a way to make the health appear near the player. Not sure if I'm going to keep this feature, but it does make it easier to keep tabs on how close you are to getting blown up."
How about a system where the health appears next to you for few seconds after taking damage, then fades away.
This way the player has an easier time knowing when they getting close to death, but you also don't have the numbers awkwardly following the player at all times.