When is it time to implement distributed monitoring?

I’m wondering how to tell when its time to implement distributed monitoring in Nagios or if there are certain thresholds to use as a guideline. Im running nagios 3.2 on sles 11. We are currently monitoring 152 hosts and 1250 services, which seems to be growing everyday. The server is constantly under 40%++ CPU utlization (very frequently it sits above 80+%) and a load of 3 to 10, which varies. The system has dual Intel Xeon 3 Ghz processors and 4gb memory. In the performance information my check latency is about 0.75 second.

Im asking because we are getting some checks that time-out and throw an alert. Its annoying getting the false positives and then the recovery alerts from those services as well.

Any information or help would be appreciated!

Thanks!
-Rob