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Increases the amount healed by those percentages I assume...
Yup. Increases the base amount of all your direct heal spells. So if Healing Wave normally does 2134-2436 base, it'll do 2347-2680. Doesn't sound like much until you notice that it's just the base amount: purification is multiplicative with your +healing, and is factored before Healing Way.
It's a great talent: you're essentially increasing your HPS by at least 10% without increasing mana output.