In order to study the application of image processing technology in remote monitoring and intelligent medical systems, the principle and implementation method of a remote intelligent image monitoring system based on virtual local area network is proposed; this method analyzes the key technologies to be considered in the remote realization of image monitoring, adopts advanced digital image compression coding and decoding technology and digital image transmission technology, and applies intelligent image processing and recognition technology to display, adjust, and track images; it overcomes the defects that the general monitoring system requires excessive intervention by monitoring personnel and low intelligence. After verification, the experimental results show that the proposed model can accurately and efficiently segment nonoverlapping cervical cell images, and compared with other existing models, this model has both higher segmentation accuracy and faster calculation speed. The application of multicast is still only in the laboratory or small local area network; with the further development of network technology, its application prospects will be very broad.