Physiological monitoring methods and systems utilizing distributed algorithms

Systems and methods are provided for operating a physiological monitoring system that comprises a distributed algorithm. The physiological monitoring system ma comprise a sensor and a physiological monitor that may be communicatively coupled with the sensor. The sensor may store a first executable code segment and the physiological monitor may store a second executable code segment. The physiological monitor may be configured to receive the first executable code segment and execute the first and second executable code segments to determine at least one physiological parameter of a subject based on physiological signal provided by the sensor. The physiological monitor may be configured to delete or deactivate the first executable code segment. The physiological monitor may also store a configurable algorithm stage that may be configured based on algorithm configuration data received from the sensor.