I would say that the first hit that happens you:
1. Lose your spell.
2. Take damage assuming a "bloody" stance for attack.
3. Then switch to full defensive for attack stance.
What i was talking about before though, is depending on the level of concentration you dedicate to your spell, you would be able to withstand a certain amount of damage before losing the spell.
I like this idea. maybe the more concentration you dedicate to your spell, the less chance of losing it, but the more damage you take while getting hit.