Well it's closer to what raw hps is needed in "normal condition". By "normal" i mean "around 1 healer for 5 people", "no crappy healer in the comp", and "raid does not top charts for avoidable damage". Any time i do a "good rank", at least 2 of the above points are wrong.
I mean, if you have all 4 healers at 99% ranking, this means roughly that your raid takes more damage than 99% of all raids... It's pointless.
Then there is the option to drop one healer for more NEEDED dps in cutting edge progression, ok. But that's a story that should not concern most players.