That is a HORRIBLE idea! I hope it's struck down. This is problematic on so many levels I don't even know where to start.
Let's see, first, as you noted, this is already a disadvantaged population. The bargaining power is far from equal here. The inducement of time off a sentence would be too attractive for some to turn down. And donating an organ isn't exactly easy, it's fucking surgery! It can be life altering. Not to mention, as you also pointed out, it's not as if inmates get the best medical care to begin with.
What's next padding the cheques of welfare recipients for organ donation? How about the homeless? This is ridiculous! Yes, by all means, let's treat our most vulnerable citizens as body part farms. Hey, speaking of citizens, let's do something about those illegals, I know, give up a body part and stay in the country! Seriously! Okay, I know I'm being hyperbolic but you see how this can so easily get out of hand. So much for human dignity, eh?
And, hey, maybe I'm a little too pessimistic and suspicious, but overcrowding in prisons could easily be solved if some of these generous inmates giving up body parts never made it back to the jail after giving up the goods....just sayin'