Does this qualify as slander, and what are my options?

I was laid off in July of this year and was recently talking to a former co-worker. She stated that former co-workers have been spreading around a rumor that I went crazy and had to be hospitalized. She told them that is not true and I am fine. She stated that people keep talking about the rumors in front of the juveniles I used to case manage. I have since spoken to 2 other co-workers in other facilities within the CT Judicial Branch who have stated they have been hearing the same rumors. I have tried to call former supervisors over the last 2 months as I am trying too get back into the branch and have not received any callbacks making me wonder if they have heard these rumors. I am very upset at this and it is causing serious anxiety.