TL;DR - this node is functionally identical to having 25% more maximum life from the perspective of max hits. If you look at step 1 in both calcs below you will see a difference of 25% in terms of the damage you need to survive to allow regen to save you.
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Normally if you take a 2000 damage (post mitigation) hit with 500 regen/sec, you:
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lose 2000 health, this happens in 1 server tick. On the same tick regen begins.
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one second later have regenerated 1/4 of the hit, so you’re now missing 1500hp
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3 seconds after that, assuming no more hits or degens or anything, you reach max health again.
With grasping wounds, 2k hit, 500 regen:
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lose 1500 health. This happens in 1 server tick. In the same tick you have a degen applied to you equal to 25% of 500 (125 damage/sec degen). Your regen also starts this tick.
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one second later, you have taken 125 damage from the degen and regenerated 500hp, for a net gain of 375 hp, so you’re now missing 1125hp.
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3 seconds later you have regenerated to full health (375*3=1125).