The current status of children's health care is examined from negative, positive, and neutral perspectives. In answer to the question posed in the title, “what do we do” about the situation, several proposals are advanced for the future of pediatric psychology and children's health care. These include (a) orientation to the prevention of psychological and physical problems, (b) promotion of health-enhancing life-styles, (c) collaboration with allied disciplines in psychosocial care of children, (d) creativity in developing new and innovative service provision, and (e) diversification of activities and interests in pediatric psychology.